FOR IMMEDIATE RELEASE:
June 23rd, 2025
Contact: Press_Paul@paul.senate.gov, 202-224-434
Dr. Rand Paul Introduces the Restore Prescription Drugs Discount Act
WASHINGTON, D.C. — U.S. Senator Rand Paul (R-KY) today introduced the Restore Prescription Drugs Discount Act, a bill to eliminate an outdated antitrust law that hinders insurers and employers from negotiating upfront discounts for better prices on prescription drugs.
As a result of a class action lawsuit in the 1990s, the Robinson-Patman Act of 1936 prohibits insurers and employers from negotiating upfront discounts with pharmaceutical companies to drive the cost of prescription drugs down. To comply with this ruling, drug manufacturers shifted from offering upfront discounts to retroactive discounts, also known as rebates, provided upon proof of sales. Simply put, the Robinson-Patman Act’s ban on upfront discounts leaves insurers and employers without leverage to negotiate, leading to higher costs for patients.
Dr. Paul’s bill would fully repeal the law and give insurers the ability to negotiate savings more transparently, helping drive down drug prices for patients.
“The Robinson-Patman Act is a relic from the Great Depression,” said Dr. Paul. “It punishes direct discounting and drives up costs for patients. Repealing it will remove an unnecessary legal barrier and bring transparency and competition back to the prescription drug market.”
Read the full bill HERE.
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