05/03/2022

Regulation of TPAs, Gag Clause Legislation

House Bill 4351 (Public Act 12 of 2022) and 4352 (Public Act 13 of 2022) –Regulation of TPAs, Gag Clause Legislation

This bipartisan package of bills would, among other things regulate Third Party Administrators (TPAs) in an effort to provide several new protections for pharmacies and consumers. The bill is in part intended to rein in nefarious practices whereby TPAs write into contracts prohibitions on pharmacies disclosing medication prices to consumers. Prohibitions on discriminatory practices related to 340B entities and transparency measures are also included.

The measures were signed into law on February 23, 2022.