summary
Introduced
12/03/2019
12/03/2019
In Committee
12/04/2019
12/04/2019
Crossed Over
Passed
Dead
12/31/2020
12/31/2020
Introduced Session
116th Congress
Bill Summary
To amend title XIX of the Social Security Act to improve transparency and prevent the use of abusive spread pricing and related practices in the Medicaid program. This bill requires pass-through pricing models, and prohibits spread-pricing, for payment arrangements with pharmacy benefit managers under Medicaid. The bill also extends funding for retail pharmacy surveys and requires additional information with respect to price concessions, dispensing fees, and survey participation to be made publicly available.
AI Summary
This bill, the Drug Price Transparency in Medicaid Act of 2019, aims to improve transparency and prevent the use of abusive spread pricing and related practices in the Medicaid program. The key provisions of the bill are:
1. It requires pass-through pricing models and prohibits spread-pricing for payment arrangements with pharmacy benefit managers (PBMs) under Medicaid. This means that any payments made by the Medicaid managed care entity or PBM to pharmacies must be passed through in full, with a limit on the administrative fees that can be charged.
2. It extends funding for retail pharmacy surveys and requires additional information, such as price concessions, dispensing fees, and survey participation, to be made publicly available. This is intended to improve the accuracy of the national average drug acquisition cost data used in Medicaid.
3. It includes a requirement for retail community pharmacies that receive any Medicaid-related payments, fees, discounts, or rebates to respond to the retail price surveys conducted by the Secretary.
The bill aims to increase transparency and prevent the use of practices that may lead to higher drug prices for the Medicaid program.
Committee Categories
Business and Industry, Health and Social Services
Sponsors (2)
Last Action
Referred to the Subcommittee on Health. (on 12/04/2019)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.congress.gov/bill/116th-congress/house-bill/5281/all-info |
BillText | https://www.congress.gov/116/bills/hr5281/BILLS-116hr5281ih.pdf |
Bill | https://www.congress.gov/116/bills/hr5281/BILLS-116hr5281ih.pdf.pdf |
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