Prescription Drug Transparency and Affordability Act

The Prescription Drug Transparency and Affordability Act (HR 2450) requires pharmacy benefit managers (PBMs) to provide detailed, regular reports to group health plans and health insurance issuers about prescription drug pricing and spending. These reports, to be submitted every six months (or quarterly if requested), must include specific information about drug costs, rebates, out-of-pocket spending by participants, and other financial details in plain language and machine-readable format. The law specifically applies to "specified large employers" (employers with 100+ employees) and "specified large plans" (plans with 100+ participants), aiming to increase transparency about drug pricing and help health plans make more informed coverage decisions. The bill includes enforcement provisions, with potential civil penalties for non-compliance, and requires reports to be provided in accessible formats while maintaining privacy protections.