This week, President Trump signed legislation banning “gag clauses” that prevent pharmacists from informing consumers when drug prices may be cheaper purchased out of pocket rather than through health insurance coverage. Currently, some health insurance plans and pharmacy benefit managers prohibit pharmacists from informing consumers of such price discrepancies. The bills, one for Medicare and Medicare Advantage beneficiaries, and another for employer-based and individual policies, were sponsored by Sens. Collins (R-ME), and Stabenow (D-MI) as well as Rep. Doggett (D-TX), and passed by Congress in nearly unanimous votes in September. 

The law over private insurance plans takes effect immediately, while the law over Medicare and Medicare advantage plans takes effect in January 2020. Although it is unclear how much these new laws will affect drug prices overall, a March 2018 JAMA research letter found that gag clauses resulted in $135 million in overpayments in certain private insurance plans in 2013.