Prescription Drug Supply Chain Pricing Transparency Act
Impact
The proposed bill seeks to uncover various elements of drug pricing, including the magnitude and nature of compensation structures used by different players in the prescription drug supply chain. By focusing on these parameters, the act aims to identify potential conflicts of interest and uncover patterns in price-related compensation. The findings from this study could lead to informed recommendations for both legislative action and administrative reforms, ultimately aiming at reducing drug costs for consumers and enhancing the accountability of entities involved in drug pricing.
Summary
House Bill 7535, officially known as the Prescription Drug Supply Chain Pricing Transparency Act, mandates the Comptroller General of the United States to conduct a comprehensive study on the compensation and payment structures related to the pricing of prescription drugs within the retail supply chain. This legislation is a critical step towards greater transparency in drug pricing, aimed at understanding how intermediaries such as pharmacy benefit managers, wholesalers, and pharmacies operate concerning drug prices. It emphasizes the need to reveal factors contributing to the current pricing models and their implications for healthcare stakeholders.
Contention
Notably, there may be debates surrounding the implications of this bill, particularly regarding how it might affect current business models for stakeholders involved in the prescription drug supply chain. While supporters may argue that transparency leads to fairer pricing and eliminates conflicts of interest, opponents could raise concerns about the impact of increased scrutiny on the profitability of intermediaries and the potential pushback from industries resistant to change. Therefore, as the bill progresses, the discussions around its potential impact on the healthcare system will likely intensify.
Saving Seniors Money on Prescriptions ActThis bill establishes reporting requirements for pharmacy benefit managers (PBMs) under the Medicare prescription drug benefit and Medicare Advantage, particularly relating to the prices of prescription drugs.Specifically, PBMs must (1) disclose certain information underlying cost performance measurements (e.g., exclusions and terms), and (2) report to prescription drug plan (PDP) sponsors (and to the Centers for Medicare & Medicaid Services upon request) an itemized list of prescription drugs that were dispensed during the previous year and related data about costs, claims, affiliated pharmacies, and other specified information. PDP sponsors may audit PBMs to ensure compliance with this bill's requirements and must annually certify their compliance; PBMs are responsible for any associated civil penalties for violations.In addition, the Government Accountability Office must study federal and state reporting requirements for health plans and PBMs with respect to prescription drug price transparency and recommend ways to streamline these requirements.
Relating to the regulation of prescriptions for controlled substances, including certain procedures applicable to electronic prescriptions for Schedule II controlled substances.