# Drug Price Transparency in Medicaid Act of 2023

This bill requires drug manufacturers to be more open about how much they're charging for medications covered by Medicaid, the government health insurance program for low-income Americans. Right now, drug companies can keep their pricing deals with Medicaid pretty secretive. This bill would change that by requiring manufacturers to publicly disclose the actual prices they're charging for drugs in the Medicaid program, along with information about any rebates or discounts they're offering.

The main goal is to shine a light on drug pricing so that policymakers, researchers, and the public can see what's actually happening in the market. When prices are hidden, it's hard for anyone to understand whether Medicaid is getting good deals or overpaying for medications. By making this information public, the bill aims to create pressure for better pricing and help identify situations where drug costs seem unreasonable compared to other countries or other programs.

This affects several groups of people. Medicaid beneficiaries might benefit if transparency leads to lower drug prices or better negotiating power for the government. Taxpayers would benefit if Medicaid saves money through better-informed purchasing decisions. However, drug manufacturers argue that revealing their pricing could hurt their business by exposing competitive information. Healthcare researchers and patient advocacy groups would gain access to data that could help them understand drug pricing trends and advocate for changes.

The practical impact depends on whether transparency alone is enough to change pricing behavior, or whether it would need to be paired with other policies that actually give Medicaid the power to negotiate prices or refuse to cover drugs that are priced too high.

Drug Price Transparency in Medicaid Act of 2023

Welch, Peter

Drug Price Transparency in Medicaid Act of 2023 This bill requires pass-through pricing models, and prohibits spread-pricing, for payment arrangements with pharmacy benefit managers under Medicaid. The bill also extends funding for retail pharmacy surveys and requires additional information with respect to price concessions and survey participation to be made publicly available.