Drug Price Transparency in Medicaid Act of 2023

Drug Price Transparency in Medicaid Act of 2023

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 and survey participation to be made publicly available.

Bill 118 s 1038, also known as the Drug Price Transparency in Medicaid Act of 2023, aims to increase transparency in drug pricing within the Medicaid program. The bill requires drug manufacturers to provide detailed information on the pricing of their drugs to the Department of Health and Human Services (HHS) and state Medicaid programs.

Under the provisions of the bill, drug manufacturers must disclose the average manufacturer price (AMP) and the best price for each drug covered by Medicaid. This information will be used to ensure that Medicaid is receiving the best possible prices for prescription drugs and to prevent price gouging by pharmaceutical companies.

Additionally, the bill requires HHS to publish an annual report on drug pricing in Medicaid, including information on the prices paid by Medicaid for the top 50 most prescribed drugs. This report will provide valuable data to policymakers and the public on the cost of prescription drugs within the Medicaid program. Overall, the Drug Price Transparency in Medicaid Act of 2023 aims to increase transparency and accountability in drug pricing within the Medicaid program, ultimately leading to lower costs for both the program and its beneficiaries.