Senate Passes Bill That Would End Gag Clauses for Insurers, PBMs

The Senate passed legislation that would bar PBMs or insurers from including gag clauses in their contracts with pharmacies, sending the bill to the House by a vote of 98-2.

The bipartisan Patient Right to Know Drug Prices Act (S.2554) — authored by Sens. Susan Collins (R-Maine) and Claire McCaskill (D-Mo.) — prohibits the imposition of gag clauses by health insurers and PBMs, a tactic that blocks pharmacists from telling patients when paying for a prescription would be cheaper out-of-pocket rather than through insurance.

The bill applies to plans offered through healthcare exchanges and private employers.