New Laws End Pharmacist ‘Gag Clauses’ On Medication Prices
Prescription medication can be expensive. But the Trump administration is trying to help people cut down on those costs where they can.
President Donald Trump signed two bills into law Wednesday. Both put an end to the so-called “gag clauses” that prevent pharmacists from telling consumers they could save money on medications if they paid out of pocket instead of using insurance. Those clauses are sometimes part of agreements between pharmacies and the benefit managers who administer prescription drug programs for insurance companies.
“Our great citizens deserve to know the lowest price available at our pharmacies, and now that’s what they’ll be getting,” President Trump said at the signing ceremony.
Some states already had their own legislation banning the pharmacy gag clauses. One of the bills the president signed addresses the tactic at the federal level. The other bill applies to drug coverage under Medicare.
Neither bill actually goes so far as addressing the issue of bringing down drug prices. But Health and Human Services Secretary Alex Azar told reporters the administration is working on more regulatory action to do just that.
Additional reporting from Newsy affiliate CNN.
Source:: Newsy Headlines