WASHINGTON, D.C. - Today, Rep. Rob Menendez (NJ-08) joined Reps. Kristen McDonald Rivet (MI-08), Buddy Carter (GA-01), and John James (MI-10) in introducing the Prescription Drug Transparency and Affordability Act, which would increase transparency in the prescription drug pricing system with new reporting requirements and penalties to hold those who fail to comply accountable.
“Americans have rightly demanded lower costs for prescription drugs, and our pricing transparency bill aims to do just that,” said Congressman Rob Menendez. “Greater access to prescription drug pricing information will enable patients and employers to make better informed decisions - a commonsense solution that benefits all Americans.”
The legislation focuses on the role that Pharmacy Benefit Managers (“PBMs”) play in the prescription drug pricing system. PBMs act as intermediaries between insurers, drug manufacturers, and pharmacies – often with a great degree of opacity in their business practices. This bill requires that PBMs accurately disclose financial transactions related to their work and assesses penalties of up to $100,000 per violation for providing false information.
This legislation is expected to result in savings for patients and employers. Full text of the bill is available here.
Congressman Menendez is a member of the House Energy and Commerce Committee, which has jurisdiction over health care matters in Congress. To learn more about his work on behalf of New Jersey's Eighth Congressional District, click here.
