Pharmacy Gag Clauses Prohibited

On Aug. 28, 2018, Gov. Carney signed HB 425 into law. The new law prohibits contracts between pharmacies and pharmacy benefit managers from containing what’s commonly referred to as a gag clause. A gag clause prohibits a pharmacy from informing a consumer that they have options related to their prescription — specifically, purchasing the prescription for a retail price that’s lower than the price offered through their health insurance plan.

Under the new law, which applies to contracts entered into or renewed on or after Aug. 28, 2018, a pharmacy is permitted to:

  • Provide an insured with information regarding the retail price of a prescription drug or the amount of the cost share under the insured’s health insurance policy; and
  • Discuss with an insured information about a more affordable, therapeutically equivalent prescription drug and selling that drug to the insured

HB 425 »