Improving Transparency to Lower Drug Costs Act of 2021

Improving Transparency to Lower Drug Costs Act of 2021

This bill requires the Centers for Medicare & Medicaid Services (CMS) to publish certain payment information regarding pharmacy benefit managers (PBMs) and prescription drugs. Specifically, the CMS must publish certain information, as reported by PBMs, relating to generic dispensing rates, drug discounts and rebates, and payments between PBMs, health plans, and pharmacies, in accordance with specified confidentiality requirements.

Bill 117 HR 3682, also known as the Improving Transparency to Lower Drug Costs Act of 2021, aims to address the issue of rising prescription drug prices in the United States. The bill focuses on increasing transparency in the pharmaceutical industry in order to lower costs for consumers.

One key provision of the bill is the requirement for drug manufacturers to provide more information about the pricing of their products. This includes disclosing the costs of research and development, production, and marketing, as well as any discounts or rebates offered to insurers or pharmacy benefit managers.

Additionally, the bill seeks to increase competition in the market by allowing for the importation of cheaper prescription drugs from other countries. This would give consumers more options when it comes to purchasing their medications and could help drive down prices. Furthermore, the bill includes measures to prevent price gouging by pharmaceutical companies. It would require manufacturers to justify any price increases that exceed the rate of inflation and impose penalties for companies found to be engaging in unfair pricing practices. Overall, the Improving Transparency to Lower Drug Costs Act of 2021 aims to make prescription drugs more affordable for American consumers by increasing transparency in the pharmaceutical industry and promoting competition in the market.