DemocratBill · S. 927· Senate(119-S-927)

Protecting Pharmacies in Medicaid Act

Rep. Welch
Age: 79 years
Vermont
Introduced
3/11/2025
Last activity
3/11/2025 — Read twice and referred to the Committee on Finance.
Sponsored by
Peter Welch
Cosponsors
Democrat - 1Republican - 2
Health
  1. Introduced
  2. In Committee

What this bill would do

The Protecting Pharmacies in Medicaid Act aims to amend the Social Security Act to improve pharmacy payments and prevent abusive spread pricing practices within Medicaid. It requires the Secretary to conduct monthly surveys of retail and non-retail pharmacy drug prices to establish national average acquisition cost benchmarks. The bill establishes civil money penalties for pharmacies that fail to comply with survey requirements or provide false information. Additionally, it mandates a transparent prescription drug pass-through pricing model for contracts involving pharmacy benefit managers or managed care entities. This model limits payments to ingredient costs and professional dispensing fees while requiring administrative fees to reflect fair market value. Finally, the act prohibits certain forms of spread pricing to ensure more accurate financial reporting and oversight.

Yes· 3 of 8

  • Does this make what the government does easier for the public to see?+7

    The bill significantly enhances transparency by requiring public disclosure of pharmacy drug pricing and survey data.

  • Does this lower the price of prescription medicines?+6

    By targeting spread pricing and increasing transparency, the bill aims to control and more accurately reflect drug costs.

  • Does this give people more protection from unfair business practices?+5

    The bill increases consumer protection by increasing drug pricing transparency and preventing abusive spread pricing practices.

The opposite

  • Would business owners be better off under this?-5

    Pharmacies face increased compliance costs, monthly survey requirements, and significant potential fines.

  • Would billionaires be better off under this?-5

    Entities such as Pharmacy Benefit Managers (PBMs) face restrictions on their previous pricing models and administrative fees.

  • Does this leave more decisions to the states?-2

    The bill imposes more federal mandates and oversight on state-managed Medicaid pharmacy processes.