Reaction to the Vote
Following the passage of the bill, Senator Collins stated, “Insurance is intended to save consumers money. Gag clauses that prevent pharmacists from telling patients how to pay the lowest possible price for their prescription drugs do the opposite … A recent study of 9.5 million insurance claims found that 23% of customers overpaid for their prescriptions when using insurance. Our bipartisan legislation to stop this egregious practice will help lower the cost of prescription drugs, saving consumers money and improving health care.”
Senator McCaskill said, “Nearly one in four Americans pay more for their prescriptions than they need to—and at a time when drug prices are skyrocketing and Missourians are struggling to pay for their prescriptions, that’s just unacceptable … I’m proud to have worked across the aisle to get this commonsense fix done that will help Missourians better afford their prescriptions, and I hope this bill moves quickly to the President’s desk.”
In a statement reacting to the vote, NCPA CEO B. Douglas Hoey, Pharmacist, MBA said, “Empowering pharmacists to discuss out-of-pocket payment alternatives with patients on private insurance, as S. 2554 does, may reveal lower-cost options. Helping patients know their alternatives increases the chances they can afford their medications—and that they will take them as they should and refill them when necessary.”
Related Legislation
The Senate also recently passed S. 2553, the Know the Lowest Price Act, which prohibits gag clauses in Medicare Part D plans.
Centers for Medicare & Medicaid Services (CMS) sent a letter to companies that provide Medicare prescription drug coverage in Part D explaining that so-called “gag clauses” are unacceptable. CMS Administrator Seema Verma wrote, “Many patients don’t know that some drugs are actually more expensive when they use their insurance. What’s worse is that some pharmacy benefits managers are preventing pharmacists from telling patients when this is happening, because they get a share of the transaction when the patient uses their insurance. Today we are taking a significant step towards bringing full transparency to all the back-end deals that are being made at the expense of patients.”
What’s Next
The Patient Right to Know Drug Prices Act now heads to the House of Representatives for consideration. If the bill passes the House, it will then be sent to the President for review.
President Trump has already announced his support for the legislation. He wrote a tweet stating, “Americans deserve to know the lowest drug price at their pharmacy, but “gag clauses” prevent your pharmacist from telling you! I support legislation that will remove gag clauses and urge the Senate to act. #AmericanPatientsFirst.”
Eliminating gag clauses is part of the Trump Administration’s plan to lower drug prices for American consumers. Secretary of Health and Human Service Alex Azar has stated that in addition to eliminating gag clauses, the administration will take steps to change up the roles and functions of PBMs to decrease the costs of drugs across the board.
