Legislation Signed Into Law Prohibiting 'Gag Clauses' for Pharmacies

Oct 12, 2018
Wednesday, President Trump hosted leaders from pharmacy associations, including NCPA and NACDS, and several independent pharmacists at a signing ceremony for the Patient Right to Know Prices Act (S. 2554) and the Know the Lowest Price Act (S. 2553). The legislation bans plan or PBM “gag clauses” that restrict pharmacists from telling patients when the cash price of a medicine is less than what they would pay under their insurance plan. Combined, the legislation prohibits such restrictions for group plans offered by employers, plans offered on the individual market, and for Medicare Advantage and Medicare Part D plans. As well, S. 2554 includes language requiring biosimilar and brand-name biological companies to submit patent settlement agreements to the FTC and Justice Department in an effort to prevent “pay-for-delay” deals. This provision addresses one of the administration’s priorities to prevent patent settlements from delaying competition by keeping less expensive medicines from entering the market.
At the signing ceremony President Trump promised more regulatory action to increase drug price transparency and lower drug prices for consumers, stating enactment of the gag clause prohibition is only the "tip of the iceberg."

Click here to view Pharmacy Times full update, Legislation Signed Into Law Prohibiting 'Gag Clauses' for Pharmacies.

Click here to view NCPA’s full update, NCPA Leaders Attend White House Signing of "Gag Clause" Ban