Pharmacy “Gag Clause” Bills: Another Simple Fix For Drug Pricing That Is Not So Simple

US Congress wants to prohibit contracts that prevent pharmacists from alerting customers to opportunities to save money by paying out of pocket. Legislation is moving rapidly, but once again, a simple fix to a drug pricing issue may have unintended consequences.

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The U.S. Congress is poised to enact legislation that would prohibit insurers and pharmacy benefit managers from including terms in pharmacy contracts that prohibit disclosure of opportunities for customers to save money by paying out of pocket rather than using their insurance coverage for prescription drugs.

Banning so-called “gag clauses” has emerged as a high priority, bipartisan issue amid broader debate over drug pricing policy in...

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