Legislation Prohibiting Pharmacy Gag Clauses Signed By President Trump

On Wednesday, during a live webcast from the White House, President Trump signed into law a pair of bipartisan bills that has made 'gag clauses' in contracts an illegal practice.

Insurers and pharmacy benefit managers (PBMs) can no longer restrict pharmacies from providing drug price information to customers. On Wednesday, during a live webcast from the White House, President Trump signed into law a pair of bipartisan bills that has made 'gag clauses' in contracts an illegal practice.

"These clauses prevent pharmacists from telling patients about more affordable options for prescription drugs," said Trump, who called the gag clauses "unjust." "Our citizens deserve to know the lowest price."

The Patient Right to Know Drug Prices Act prohibits insurers and PBMs from restricting a pharmacy’s ability to provide drug price information to a plan enrollee when there is a difference between the cost of the drug under the plan and the cost of the drug when purchased without insurance. Under current contracts with ‘gag clauses,’ pharmacists are prohibited from proactively sharing with customers if their prescription would cost less if they paid out-of-pocket, rather than utilizing an insurance plan. Pharmacists face significant penalties for disobeying these clauses.

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