I 

115TH CONGRESS 

2D SESSION H. R. 5343 

To amend the Public Health Service Act to nullify certain contractual provisions prohibiting or penalizing a pharmacist’s disclosure of the availability 

of therapeutically equivalent alternative drugs, or alternative methods 

of purchasing the prescription drug, that are less expensive, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 20, 2018 

Mr. CARTER of Georgia (for himself, Mr. WELCH, Mr. GRIFFITH, Mr. AUSTIN

SCOTT of Georgia, Mr. COLLINS of Georgia, and Mrs. MCMORRIS RODGERS) introduced the following bill; which was referred to the Committee 

on Energy and Commerce 

A BILL 

To amend the Public Health Service Act to nullify certain 

contractual provisions prohibiting or penalizing a pharmacist’s disclosure of the availability of therapeutically 

equivalent alternative drugs, or alternative methods of 

purchasing the prescription drug, that are less expensive, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Prescription Trans5 parency Act of 2018’’. 


amozie on DSK30RV082PROD with BILLS
2 

•HR 5343 IH

1 SEC. 2. PROHIBITED GAG PROVISIONS. 

2 Part B of title III of the Public Health Service Act 

3 (42 U.S.C. 243 et seq.) is amended by adding at the end 

4 the following: 

5 ‘‘SEC. 320B. PROHIBITED GAG PROVISIONS. 

6 ‘‘(a) IN GENERAL.—No contract that is between— 

7 ‘‘(1) a health insurer or any entity that pro8 vides pharmacy benefits management services on be9 half of a health insurer (commonly referred to as a 

10 ‘pharmacy benefit manager’); and 

11 ‘‘(2) a pharmacy, pharmacist, or a pharmacy’s 

12 contracting agent, such as a pharmacy services ad13 ministrative organization, 

14 may contain a provision prohibiting or penalizing (includ15 ing through increased utilization review, reduced pay16 ments, or other financial disincentives) a pharmacist’s dis17 closure to an individual purchasing a prescription drug of 

18 information regarding the cost of the prescription drug to 

19 the individual (including any copayment or coinsurance), 

20 or regarding the availability of any therapeutically equiva21 lent alternative drug, or alternative methods of purchasing 

22 the prescription drug (including paying a cash price), that 

23 are less expensive than the cost of the prescription drug 

24 to the individual. 


amozie on DSK30RV082PROD with BILLS
3 

•HR 5343 IH

1 ‘‘(b) NULL AND VOID.—Any provision described in 

2 subsection (a) in a contract described in subsection (a) 

3 is null and void. 

4 ‘‘(c) APPLICABILITY.—Subsection (a) applies only 

5 with respect to contracts, and contract addenda, entered 

6 into or renewed on or after the date of enactment of the 

7 Prescription Transparency Act of 2018. 

8 ‘‘(d) REGULATIONS AND GUIDANCE.—The Secretary 

9 may issue such regulations and guidance as may be nec10 essary for implementation of this section. 

11 ‘‘(e) DEFINITIONS.—In this section: 

12 ‘‘(1) The term ‘drug’ has the meaning given to 

13 such term in section 201 of the Federal Food, Drug, 

14 and Cosmetic Act. 

15 ‘‘(2) The term ‘health insurer’ means a health 

16 insurance issuer (as defined in section 2791) offer17 ing health insurance coverage (as defined in such 

18 section) in the individual or group market or a spon19 sor of a group health plan (as defined in such sec20 tion). 

21 ‘‘(3) The term ‘prescription drug’ means a drug 

22 subject to section 503(b)(1) of the Federal Food, 

23 Drug, and Cosmetic Act.’’. 

Æ 


amozie on DSK30RV082PROD with BILLS