Council Action: Introduced by Councilmembers Sandy Allen (Ward 8) and David Catania (At Large); approved unanimously on March 2, 2004

Purpose: The AccessRx Act of 2004 authorizes the director of the Department of Health to negotiate rebate agreements with drug manufacturers and labelers that sell prescription drugs through publicly funded pharmaceutical assistance programs in the District. Rebates would be placed in an AccessRx Fund and used to reimburse pharmacies for drug discounts. Manufacturers and labelers who do not participate in this program will have their names publicized as a partial incentive to participate. Additionally, the bill requires greater transparency for pharmacy benefits managers (PBMs)—entities that negotiate with manufacturers and labelers on behalf of health plans to achieve prescription drug savings. PBMs would be required to have a fiduciary duty to their health plan clients, disclose conflicts of interest, and provide information on a variety of practices including substitution of prescription drugs and method of passing on cost savings to the client. Finally, the bill requires pharmaceutical manufacturers and labelers to disclose marketing costs to the District on a confidential basis.