A pair of Senators have introduced a bill aimed at limiting the alleged abusive pricing practices by pharmacy benefit managers, including the spread pricing technique.
The bill — dubbed the Drug Price Transparency in Medicaid Act of 2023 — would require Medicaid payments to PBMs to be passed directly to pharmacies, excluding administrative fees, according to an April 4 news release from Kansas Sen. Roger Marshall, MD. Dr. Marshall is sponsoring the bill along with Vermont Sen. Peter Welch, and a companion bill was introduced in the House of Representatives.
The legislation also requires all pharmacies participating in state Medicaid programs to report National Average Drug Acquisitions Costs to increase transparency in drug pricing and ensure reimbursements to pharmacies reflect the true costs of prescription drugs, according to the release.
The sponsors say the bill would save Medicaid an estimated $1 billion over 10 years.