Senate Passes Bill Banning Pharmacy ‘Gag Clauses’

The Senate unanimously passed legislation that would forbid insurers and pharmacy benefit managers from imposing “gag clauses” on drug prices.

Gag clauses prohibit pharmacists from telling customers when a prescription would cost less out of pocket than through their insurance. The bipartisan Know the Lowest Price Act (S. 2553), which passed Wednesday, is one of two price-transparency measures recently advanced in the Senate. The measure would apply to Medicare Advantage and Medicare Part D beneficiaries.

The bill now advances to the House committees on Energy and Commerce and Ways and Means.