Gov. Wolf Signs Bill Banning Pharmacist ‘Gag Clauses’

Last Updated: Jul 24, 2020

For years, “gag clauses” prevented pharmacists from telling customers when it was cheaper to pay cash for prescription drugs than to go through insurance.

Federal legislation in 2019 banned such clauses in most entities. A new Pennsylvania law will ensure entities not covered in federal legislation cannot use gag clauses either.

House Bill 943, supported by the Pennsylvania Medical Society (PAMED), was signed by Gov. Wolf on July 23, 2020. The bill is now know as Act 67 of 2020.

In 2018, PAMED’s House of Delegates directed us to support evidence-based solutions to rising drug prices. Prohibiting pharmacist gag clauses ensures that patients are informed of the least-costly payment method for drug purchase.

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