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S. 2553 - Know the Lowest Price Act of 2018
Introduced: 2018-09-05
Bill Status: Passed

Know the Lowest Price Act of 2018

(Sec. 2) This bill prohibits a prescription drug plan under Medicare or Medicare Advantage from restricting a pharmacy from informing an enrollee of any difference between the price, copayment, or coinsurance of a drug under the plan and a lower price of the drug without health-insurance coverage. (Such restrictions are commonly referred to as gag clauses.)

Full Text

S. 2553


Begun and held at the City of Washington on Wednesday,
the third day of January, two thousand and eighteen

    To amend title XVIII of the Social Security Act to prohibit health plans and pharmacy benefit managers from restricting pharmacies from informing individuals regarding the prices for certain drugs and biologicals.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Know the Lowest Price Act of 2018”.

SEC. 2. Prohibition on limiting certain information on drug prices.

(a) In general.—Section 1860D–4 of the Social Security Act (42 U.S.C. 1395w–104) is amended by adding at the end the following new subsection:

“(m) Prohibition on limiting certain information on drug prices.—A PDP sponsor and a Medicare Advantage organization shall ensure that each prescription drug plan or MA–PD plan offered by the sponsor or organization does not restrict a pharmacy that dispenses a prescription drug or biological from informing, nor penalize such pharmacy for informing, an enrollee in such plan of any differential between the negotiated price of, or copayment or coinsurance for, the drug or biological to the enrollee under the plan and a lower price the individual would pay for the drug or biological if the enrollee obtained the drug without using any health insurance coverage.”.

(b) Effective date.—The amendment made by subsection (a) shall apply to plan years beginning on or after January 1, 2020.

Speaker of the House of Representatives  

Vice President of the United States and President of the Senate  

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