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Bipartisan Senate bill targets prescription 'gag clauses'

The bill would prohibit insurers and pharmacy benefit managers from restricting a pharmacy’s ability to tell customers the difference in price between a prescription purchased with insurance or out of pocket.

Pharmacist holding prescription “Americans have the right to know which payment method—insurance or cash—would provide the most savings when purchasing prescription drugs,” Senator Susan Collins said of the new bill. (Photo: Shutterstock)

A bill introduced in the Senate by a bipartisan group of lawmakers would ban so-called “gag clauses” that bar pharmacists from proactively telling consumers that it could be cheaper to pay out of pocket for their prescriptions than to use their insurance.

The Hill reports that the clauses are sometimes included in contracts between pharmacies, insurers and companies that manage drug benefits for employers (prescription benefit managers).

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Marlene Satter

Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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