Pharmacy Benefit Manager Transparency Act of 2023

The Pharmacy Benefit Manager Transparency Act of 2023 requires pharmacy benefit managers (PBMs) to disclose pricing information and prohibits them from keeping profit margins between what they charge health plans and what they pay pharmacies. It mandates annual reporting to the Federal Trade Commission about pricing differences, rebates, and formulary changes, and prohibits PBMs from arbitrarily reducing pharmacy reimbursements or increasing fees. The law affects PBMs, health plans, pharmacies, and drug manufacturers by requiring full transparency in drug pricing practices. It includes whistleblower protections for employees who report violations and establishes enforcement mechanisms through the FTC. This legislation aims to increase clarity in the prescription drug pricing system and reduce hidden costs for consumers and healthcare providers.