The Gag Clause Legislation

The Gag Clause Legislation has passed both the New York Senate and Assembly. So what is this legislation? It would prohibit gag clauses in contracts between health insurers and healthcare providers. It is aimed at enhancing transparency and consumer protection.

Gag clauses usually restrict pharmacies from discussing or informing patients of cost structures or reimbursement rates. The lack of transparency can lead to the patient paying more for their healthcare. Removing the gag clauses may also explain to the patient why some drugs are hard to obtain.

This is a no-cost for New York and a win-win for patients and pharmacies. The only obstacle remaining is Governor Hochul’s signature.