Congress Follows Maryland Lead and Passes Law Banning "Gag Clauses" on Prescription Drugs

The Maryland law comes into effect on October 1st.

BALTIMORE, MD. Congress passed important legislation to reduce drug prices by banning "gag clauses" that prevent patients from knowing the cheapest drug options. The Patient Right to Know the Price of Medicines Act and the Lower Price Knowledge Act will help Americans be better informed about the cost of drugs and help lower prices. The measures resemble legislation passed in Maryland in 2017 and championed by the Maryland Citizens' Health Initiative. The Maryland law will come into effect on Monday, October 1, 2018.

Vincent DeMarco, Chair of the Maryland Citizens Health Initiative, issued the following statement about the Congress action.

"We are delighted that Congress has stood up for consumers and passed laws to get rid of the gag rules that have increased the cost of drugs. These congressional actions echo the groundbreaking work we've done in Maryland to control the soaring costs of drugs. This year, we passed legislation to ban this type of rule that harms consumers and benefits drug companies and intermediaries, which will come into effect next week, Monday, October 1. Under the direction of Senator Katherine A. Klausmeier and Del. Eric M. Bromwell, the General Assembly has taken decisive steps to make the cost of drugs more transparent, and we commend them for being with the average Maryland. Now is the time to create a prescription drug accessibility commission to establish fair and affordable costs for high-priced prescription drugs. Medications do not work if people can not afford them, and too many of Maryland are struggling to pay for their medications. We must take action in 2019 to reduce the cost of drugs that people rely on to live healthy lives. "

Context on congressional legislation – courtesy of patients for affordable drugs now:

• Currently, drug benefit managers sometimes include gag clauses in their contracts that prevent pharmacists from telling patients if paying cash for a drug costs less than paying through their insurance.
• The Patient Right to Know Drug Prices Act prevents insurers or PBMs from prohibiting pharmacies from informing customers of the difference between the insurance share and the actual cost of a drug. The Know Lowest Price Act would do the same for people covered by Medicare Advantage and Medicare Part D.
• The "Patient Right to Know Drug Prices" also includes a provision that will expand existing legislation to include biosimilars and biologics that require all payment delay transactions to be submitted to the FTC.
• Estimates suggest that consumers are paying too many prescriptions 23% of the time, so adopting these bills could increase options and lower prices for patients.