Pharmacy DIR Reform Bills Introduced in Congress

June 30, 2021
The Pharmacy DIR Reform to Reduce Senior Drug Costs Act has been introduced in both the U.S. House and Senate. H.R. 3554 (Rep. Peter Welch D-Vt) and S. 1909 (Sen. Tester D-MT), aim to reform the Medicare Part D retroactive direct and indirect remuneration (DIR) fees system. This legislation provides a Congressional statutory fix to the current retroactive nature of Part D DIR fees. It will require plans that cover Medicare Part D drugs to report any pharmacy price concessions or incentives to pharmacies at the claim level – at least on an annual basis. This would increase transparency in the fee structure used by PBMs and establish standardized pharmacy performance metrics.

Studies have shown how these Part D DIR claw back fees have skyrocketed in the past few years. Independent pharmacy owners say this undermines patient access to prescription drugs and hinder owners’ ability to manage their businesses.

Contact your U.S. Senators and House member to co-sponsor H.R. 3554 and S. 1909.