Section 1 Short title
This Act may be cited as the “Improving Transparency to Lower Drug Costs Act of 2021”.
Improving Transparency to Lower Drug Costs Act of 2021
A BILL
To amend title XI of the Social Security Act to provide greater transparency for discounts provided by manufacturers.
Sec. 2 Public disclosure of drug discounts
Section 1150A of the Social Security Act (42 U.S.C. 1320b–23) is amended—
in subsection (c), in the matter preceding paragraph (1), by inserting “(other than as permitted under subsection (e))” after “disclosed by the Secretary”; and
by adding at the end the following new subsection:
“(e) Public availability of certain information
“(1) In general—In order to allow the comparison of PBMs’ ability to negotiate rebates, discounts, direct and indirect remuneration fees, administrative fees, and price concessions and the amount of such rebates, discounts, direct and indirect remuneration fees, administrative fees, and price concessions that are passed through to plan sponsors, beginning January 1, 2022, the Secretary shall make available on the Internet website of the Department of Health and Human Services the information with respect to the second preceding calendar year provided to the Secretary on generic dispensing rates (as described in paragraph (1) of subsection (b)) and information provided to the Secretary under paragraphs (2) and (3) of such subsection that, as determined by the Secretary, is with respect to each PBM.
“(2) Availability of data—In carrying out paragraph (1), the Secretary shall ensure the following:
“(A) Confidentiality—The information described in such paragraph is displayed in a manner that prevents the disclosure of information, with respect to an individual drug or an individual plan, on rebates, discounts, direct and indirect remuneration fees, administrative fees, and price concessions.
“(B) Class of drug—The information described in such paragraph is made available by class of drug, using an existing classification system, but only if the class contains such number of drugs, as specified by the Secretary (but not fewer than three drugs), to ensure confidentiality of proprietary information or other information that is prevented to be disclosed under subparagraph (A).”