The Lower Costs More Transparency Act of 2023: Impact on PBMs

The Lower Costs More Transparency Act of 2023 has recently passed in the House of Representatives with a significant majority. This act aims to bring about greater transparency in the healthcare industry by requiring various entities to disclose prices and costs. Hospitals, insurers, imaging services, diagnostic laboratories, and PBMs (Pharmacy Benefit Managers) will all be subject to these new disclosure requirements.

One notable provision of the act is that PBMs will be required to share cost savings with patients that result from lower drug prices negotiated with pharmaceutical companies. This is a significant development as this provision aims to make the process of medication pricing more transparent.

It is important to note that while the Senate does not currently have a comprehensive bill like the Lower Costs More Transparency Act of 2023, they do have several smaller bills that address similar issues. While the Senate's response to this act is yet to be determined, there are indications that they will consider similar measures. We will continue to monitor the progress of this act and its potential impact on the healthcare industry.