Rep. Takano Introduces the Health Data Access, Transparency and Affordability (DATA) Act
WASHINGTON, D.C. — Today, Representative Mark Takano (CA-39) introduced the Health Data Access, Transparency, and Affordability (DATA) Act to demand transparency from service providers, like third party administrators and pharmacy benefit managers, when health plan fiduciaries request information. The Health DATA Act builds upon reforms enacted by Congress as part of the bipartisanNo Surprises Act.
Fiduciaries are responsible for overseeing the health care plans that employees rely on. The Health DATA Act amends the Employee Retirement Income Security Act of 1974 (ERISA) to close loopholes that allow third parties – like pharmacy benefit managers (PBMs) – to hide information from fiduciaries about pricing and overpayment. The bill authorizes the Secretary of Labor to penalize violators $10,000 per day if third parties fail to provide health plan fiduciaries with the information they need to make healthcare more affordable.
The bill also ensures that the data shared to plan fiduciaries cannot be used to discriminate against individuals and that data is subject to existing privacy and antidiscrimination laws.
“Third parties hold data on individual patients and pricing for drugs and procedures,” said Congressman Mark Takano. “Those who oversee health plans must have access to this data to ensure fair pricing for those receiving employer sponsored healthcare. Without access to this information, employees are vulnerable to being overcharged or price gouged. Gaps in recent legislative efforts have allowed third parties like PBMs to keep this data hidden, leaving fiduciaries with an incomplete picture of how to best serve the over 165 million Americans on employer-sponsored health plans.”
Full text of the Health DATA Act can be found here.
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