Medicaid Drug Decisions Transparency Act: Last Minute Bill to be Introduced to in the Senate to Expand Open Payments to Pharmacists on Medicaid Committees

Better late than never? During this last week of session for the United States Congress, Senator Cory Booker of New Jersey plans to introduce legislation that would require more transparency surrounding states’ Medicaid drug decisions.

The legislation, known as the Medicaid Drug Decisions Transparency Act, comes on the heels of a recent investigation by the Center for Public Integrity and NPR. It would require pharmaceutical companies to disclose their payments to pharmacists and others who serve on state Medicaid drug boards. Currently, drug makers are only required to disclose gifts and other payments given to doctors such as free dinners, speaking fees, and consulting fees. The bill would also increase penalties for companies that do not comply with reporting requirements.

“These are really nefarious tactics that drug companies use, and they use them to influence state Medicaid programs’ drug coverage decisions,” says Booker. “My bill’s going to address this problem by increasing transparency — shining a light onto these payments.”

The bill would also require individual states to publish – and maintain/update – the lists of members on their Medicaid drug boards. The United States Secretary of Health and Human Services would also have to provide states with summaries of drug company payments made to members of their Medicaid drug committees.

The Investigation

The impetus behind this bill was an investigation done by the Center for Public Integrity and NPR, “Medicaid, Under the Influence.” The investigation focused on the influence drug makers may have on states’ choices regarding drugs for Medicaid patients.

According to the study, drug companies attend state Medicaid board meetings when their drugs are up for consideration and have even given payments and perks to some of the doctors serving on those boards. The study believes that it is these efforts that have increased Medicaid expenses nationwide.

Conclusion

As we are in the final week of the current Congressional session, it is unlikely that the bill will pass this week. However, Booker notes that he hopes it sets the tone for the upcoming split Congress and plans to reintroduce it in 2019.