Every January, millions of Americans prepare for their insurance plans to reset and await the potential increase in out-of-pocket costs for medications and procedures.
In rural communities, we not only experience the financial burdens associated with increased out-of-pocket drug prices, but we also face a splintered drug pricing system marred by requirements that may or may not protect rural and independent pharmacies and stifle our ability to shop for medical services.
Last year, I was proud to introduce the “Delinking Revenue from Unfair Gouging Act” or the “DRUG Act.” This legislation bans spread pricing and patient steering and implements de-linking policies in the commercial insurance market. It puts downward pressure on prescription drug prices and insurance premiums by removing the incentive for Pharmacy Benefit Managers, or PBMs, to drive up the list price of a medication. Additionally, this legislation protects independent pharmacies and a patient’s right to choose their pharmacy without pressure from PBMs.
Another bill that empowers patients and provides financial relief is the “Lower Costs, More Transparency Act.” This legislation enables patients and employers to shop for healthcare and make informed decisions by requiring insurers and PBMs to disclose negotiated drug rebates and reveal the actual costs of prescription drugs.
The “Lower Costs, More Transparency Act” is a large legislative package that, in addition to supporting patients, assists hospitals with Disproportionate Share Hospital (DSH) payments to ensure that they can continue to provide care for low-income communities and enshrines additional price transparency measures.
The package also includes the “Diagnostic Lab Testing Transparency Act,” legislation that I was proud to introduce to extend specific price transparency requirements to diagnostic labs.
Currently, patients can only see the prices for labs conducted at hospitals, not the prices for diagnostic services offered by competing independent labs. The “Diagnostic Lab Testing Transparency Act” supports consumer choice and price comparison by expanding a patient’s ability to shop for diagnostic tests.
The legislation would also require diagnostic laboratories to disclose three data points for clinical diagnostic laboratory tests included on the list of shoppable services specified by the Centers for Medicare and Medicaid Services.
The entire “Lower Costs, More Transparency Act” package, including the “Diagnostic Lab Testing Transparency Act,” passed the House, and I look forward to moving this legislation one step closer to becoming law.
As the Republican-led House continues to combat the rising prices of medications and testing services, I will continue to address the unique healthcare challenges that rural communities face and ensure we can shop for medical services that fit within our budgets.
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