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The U.S. House of Representatives passed the Lower Costs, More Transparency Act, which advances policies to force pharmacy benefit managers and hospitals to meet price transparency standards by a vote of 320 to 71.
The National Federation of Independent Business (NFIB) published a press release announcing support of the legislation.
This bipartisan package represents an important step towards increasing transparency and competition in healthcare systems and lowering costs for small business owners and their employees.
The bill promotes healthcare price transparency and lowers prescription drug costs for small business owners and patients. It makes community pharmacists more competitive by exposing potential anticompetitive Pharmacy Benefit Manager (PBM) practices. It also provides employers with more choice and control over their healthcare costs.
“Health insurance costs have been a longtime top concern for small business owners nationwide,” says Josselin Castillo, NFIB manager of federal government relations. “This legislation will promote necessary transparency and competition in the healthcare system, lowering healthcare costs and ultimately benefiting small businesses. NFIB commends members of the U.S. House for supporting this important legislation and promoting healthcare affordability thereby strengthening the small business community.”
The legislation strengthens previous rules requiring hospitals and insurers to release detailed information to the public about the cost of care, treatments, and services. It also empowers employers with information by requiring pharmacy benefit managers (PBMs) to disclose to employers all negotiated rebates, wholesale acquisitions, and discounts associated with a plan sponsor’s prescription drug benefit. It will make PBM activities more transparent and ensure employers have the information they need to make smart choices on behalf of their employees.
