President Donald Trump signed a law that ends insurance companies’ pharmacist gag clauses in an effort to lower drug prices Wednesday.
Currently, insurers and pharmacy benefit managers use the gag clauses to “forbid pharmacists from proactively telling consumers if their prescription would cost less if they paid for it out-of-pocket rather than using their insurance plan,” according to a press release from Maine Republican Sen. Susan Collins, the bill’s sponsor.
Trump also signed Democratic Michigan Sen. Debbie Stabenow’s Know the Lowest Price Act, which “prohibits Medicare drug plans from putting a gag clause on a pharmacy in their contracts”.
The Patients’ Right To Know Drug Prices Act would lead to “a slight decrease in federal revenues,” according to the Congressional Budget Office.
“If there’s anything bipartisan it’s lowering drug prices,” Trump said. “The price of prescription drugs it’s way out of whack, it’s way too high” Trump added.
The new law will allow pharmacists to speak openly about lower-cost drug options without the fear of being kicked out of any network. This is huge because as people chose the lower-cost drugs it could potentially force big pharma to lower their overall prices.
As Reported By CBS News:
Prescription drug prices, despite the president’s pressure on drug companies. The two bills the president is signing, the Know the Lowest Price Act and Patients’ Right to Know Drug Prices Act, are intended to curb that. They both aim to ban “gag order” clauses in contracts between pharmacies and insurance companies.
In the past, Mr. Trump has said drug companies are “getting away with murder.”
It’s great to see laws being signed on behalf of the American people. Even more so, to see laws that lessen the ridiculous burden the medicinal industry forces on those who are the most vulnerable- the sick. Thank you, President Trump.