Drug Price Transparency Act of 2023

S 1131, the Drug Price Transparency Act of 2023, requires drug manufacturers to make price discounts visible to patients at checkout and ensures transparency in fees paid to pharmacy benefit managers (PBMs). It directly affects drug manufacturers, PBMs, and health insurance plans (including Medicare Part D, private plans, and ERISA-covered plans) by eliminating hidden rebates and mandating that any price reduction for covered drugs appears at the point of sale. The bill allows only two types of arrangements: discounts shown to patients or flat-fee service payments to PBMs that are transparent to health plans. It takes effect January 1, 2024, and focuses on making pricing clear without setting new price limits.