The Senate overwhelmingly passed a bill on Monday that would prohibit a controversial practice through which insurers and drug middlemen prevent consumers from paying less at the pharmacy counter on prescription drugs.

Monday's legislation, which passed by a 98-2 margin, would prohibit insurers and drug middlemen called pharmacy benefit managers from inserting “gag clauses” into contracts with pharmacies. The clauses prohibit pharmacists from informing consumers it is cheaper to buy a drug out-of-pocket rather than through their insurance.





The Senate earlier this month passed a bill that stopped private plans from inserting such clauses into Medicare Part D drug plans.

The House Energy and Commerce Committee is considering its own version of the legislation to prohibit gag clauses for private plans.

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Pharmacy benefit managers oversee drug plans for an employer or union-sponsored insurance.

Senators have targeted practices like gag clauses as part of a larger effort to boost transparency in the healthcare system. Sen. Bill Cassidy, R-La., a co-sponsor of the gag clause bill, released a series of healthcare ideas back in May that included improving transparency so patients know the price of healthcare procedures.