Drug Price Transparency in Medicaid Act of 2023

This bill requires Medicaid programs to use contracts with pharmacy benefit managers (PBMs) and managed care entities that mandate a pass-through pricing model for drugs. Under this model, payments must cover only the drug’s ingredient cost and a standard dispensing fee, with all payments passed directly to pharmacies, and prohibits PBMs from keeping any excess (known as spread pricing). It also mandates a national survey of retail pharmacy prices to set the average drug acquisition cost used for Medicaid reimbursements, requiring participating pharmacies to provide price data for the survey.