Title: Prescription Transparency Act of 2018
Policy area: Health

Summary:
Prescription Transparency Act of 2018
This bill prohibits contract provisions between a health insurer and a pharmacy that prohibit or penalize a pharmacist's disclosure to an individual purchasing a prescription drug of information regarding (1) the cost of the drug, (2) the availability of any therapeutically equivalent alternative drug, or (3) less expensive methods of purchasing the drug.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5343 Introduced in House (IH)]

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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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prescription Transparency Act of 
2018''.

SEC. 2. PROHIBITED GAG PROVISIONS.

    Part B of title III of the Public Health Service Act (42 U.S.C. 243 
et seq.) is amended by adding at the end the following:

``SEC. 320B. PROHIBITED GAG PROVISIONS.

    ``(a) In General.--No contract that is between--
            ``(1) a health insurer or any entity that provides pharmacy 
        benefits management services on behalf of a health insurer 
        (commonly referred to as a `pharmacy benefit manager'); and
            ``(2) a pharmacy, pharmacist, or a pharmacy's contracting 
        agent, such as a pharmacy services administrative organization,
may contain a provision prohibiting or penalizing (including through 
increased utilization review, reduced payments, or other financial 
disincentives) a pharmacist's disclosure to an individual purchasing a 
prescription drug of information regarding the cost of the prescription 
drug to the individual (including any copayment or coinsurance), or 
regarding the availability of any therapeutically equivalent 
alternative drug, or alternative methods of purchasing the prescription 
drug (including paying a cash price), that are less expensive than the 
cost of the prescription drug to the individual.
    ``(b) Null and Void.--Any provision described in subsection (a) in 
a contract described in subsection (a) is null and void.
    ``(c) Applicability.--Subsection (a) applies only with respect to 
contracts, and contract addenda, entered into or renewed on or after 
the date of enactment of the Prescription Transparency Act of 2018.
    ``(d) Regulations and Guidance.--The Secretary may issue such 
regulations and guidance as may be necessary for implementation of this 
section.
    ``(e) Definitions.--In this section:
            ``(1) The term `drug' has the meaning given to such term in 
        section 201 of the Federal Food, Drug, and Cosmetic Act.
            ``(2) The term `health insurer' means a health insurance 
        issuer (as defined in section 2791) offering health insurance 
        coverage (as defined in such section) in the individual or 
        group market or a sponsor of a group health plan (as defined in 
        such section).
            ``(3) The term `prescription drug' means a drug subject to 
        section 503(b)(1) of the Federal Food, Drug, and Cosmetic 
        Act.''.
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