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Chase Wilson3/1/24 12:38 PM

What to Know About H.R.6283: Delinking Revenue from Unfair Gouging (DRUG) Act

 

What is the Delinking Revenue from Unfair Gouging (DRUG) Act?

The Delinking Revenue from Unfair Gouging (DRUG) Act, also known as H.R. 6283, seeks to hold accountable the practices of Pharmacy Benefit Managers (PBMs). The legislation will prohibit PBMs from earning money based on drug sales and enforcing fair service fees, ultimately lowering prescription drug costs for consumers. By preventing PBMs from steering patients to certain pharmacies, the law also promotes competition and ensures patients have access to the most affordable and convenient options. Ultimately, the DRUG Act focuses on building a more fair and transparent system where patients can access the medications they need without facing inflated prices or undue influence from middlemen.

Why does the DRUG Act Matter?

What impact would H.R. 6283 have? Here are 3 reasons why this matters:

1. Fair Drug Pricing

The DRUG Act proposes a shift away from percentage-based pricing models used by PBMs. Instead, it advocates for a flat fee structure. This change ensures that PBMs are incentivized to negotiate better prices for prescription drugs without compromising patient access.

2. The End of Spread Pricing

Spread pricing has been a thorn in the side of patients and taxpayers. The DRUG Act aims to end this practice by prohibiting PBMs from charging health insurers more than the actual cost of medications. Transparency is key!

3. Empowering Patients

Patients deserve the freedom to choose their preferred pharmacies without undue influence from PBMs. The DRUG Act prohibits patient steering based on PBM profits, ensuring patients can make informed decisions about their healthcare.

What is the current status of the DRUG Act?

The DRUG Act (H.R. 6283) was introduced on November 8th, 2023 by Representative Mariannette Miller-Meeks from Iowa. On February 6th, 2024 it passed the House Committee on Oversight and Accountability with a vote of 29-11.

As of March 1st, 2024, H.R. 6283 is receiving continued bipartisan support. 

You can track this legislation on the US Congress site or through platforms like RegComply, D2's novel alert management platform.

What plans will be effected by H.R. 6283?

 The DRUG Act primarily impacts health insurance plans offered under the Federal Employees Health Benefits (FEHB) program. Pharmacy benefit managers (PBMs) that contract with carriers providing FEHB plans will need to adhere to the new requirements set forth by the legislation beginning on or after January 1, 2026.

You're dedicated to your patients; we're dedicated to you.

Regulatory changes and industry growth are important, but staying ahead of the changes can be difficult. This is why we've developed RegComply™, the cutting-edge alert management platform that ensures the right alerts reach the right people, every time.

Whether you’re a healthcare organization, manufacturer, or pharmacy,  it is possible to stay on top of regulatory changes, not buried beneath them. Boost compliance, streamline regulatory processes, and enhance patient care with RegComply!
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Chase Wilson

Senior Director of Compliance Services

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