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Congress Sends Bills Banning ‘Gag Clauses’ to President’s Desk

September 28, 2018

White House-backed measures to prohibit pharmacy “gag clauses” are poised to become law after the House unanimously approved them Tuesday.

The Patient Right to Know Drug Prices Act and Know the Lowest Price Act ban the use of “gag clauses,” under which pharmacists are restricted from telling patients when a drug would be cheaper out of pocket than through their insurance.

The first bill would ban the practice specifically for individual-market plans and employer sponsored group plans, whereas the second would prohibit it for Medicare Part D or Medicare Advantage plans.

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