Trump signs legislation promoting greater disclosure in drug pricing

The two bills — “The Patient Right to Know Drug Prices Act” and “The Know the Lowest Price Act of 2018” — are intended to prevent the use of “gag clauses,” which prevent pharmacies from disclosing lower prescription drug cost alternatives, in contracts with employer-sponsored, individual, Medicare Advantage (MA) and Medicare Part D plans. The U.S. House and U.S. Senate passed the bills in September.

As a result of the new legislation, a pharmacy — directly or indirectly — cannot be restricted from or penalized for showing enrollees what their out-of-pocket costs for a prescription drug are with and without using health insurance coverage. 

The bills are the first drug pricing legislation enacted following the Trump Administration’s release of the American Patients First drug pricing Blueprint in May. 

UnitedHealthcare already complies with and supports these new statutes at both the federal and state level — its contracts do not include pharmacy gag clauses.