An Act relative to pharmaceutical gag clauses
Overview: H 1203 - An Act relative to pharmaceutical gag clausesPurpose and Intent: This bill aims to prohibit the use of "gag clauses" in contracts between pharmacies and health i
Overview: H 1203 - An Act relative to pharmaceutical gag clausesPurpose and Intent: This bill aims to prohibit the use of "gag clauses" in contracts between pharmacies and health i
Overview: H 1203 - An Act relative to pharmaceutical gag clauses
Purpose and Intent: This bill aims to prohibit the use of "gag clauses" in contracts between pharmacies and health insurance providers, which currently restrict pharmacists from informing patients about lower-cost medication options.
Key Provisions:
- Bans the inclusion of gag clauses in pharmacy-insurer contracts
- Requires pharmacists to inform patients if a medication would cost less out-of-pocket than using their insurance
- Allows patients to pay the lower cash price for a medication, even if it is less than their insurance copay
Affected Parties and Impacts:
- Patients will benefit from increased transparency and access to lower-cost medication options
- Pharmacists will be empowered to provide more complete information to patients
- Health insurance providers may see a reduction in prescription drug costs and utilization
Procedural and Timeline Considerations:
- The bill is scheduled for a public hearing on October 1, 2025
- If passed, the new requirements would take effect 60 days after the bill's enactment.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.