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Drug Price Transparency Act: Ending Hidden Rebates

This act aims to increase transparency in prescription drug prices. It introduces changes that will make discounts from drug manufacturers visible to patients at the point of sale, potentially lowering drug costs. These changes apply to both insurance programs and private health plans.
Key points
Drug manufacturer discounts must be reflected at the point of sale to the patient, potentially reducing drug prices.
Pharmacy benefit managers (PBMs) will only be able to receive flat service fees from drug manufacturers, which must be transparent to health plans.
The new rules will take effect on January 1, 2023, covering Medicare programs, private insurance, and employee plans.
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Additional Information
Drug Price Transparency Act of 2021
Print number: S 1523
Sponsor: Sen. Braun, Mike [R-IN]
Process start date: 2021-04-29