1. Short title This Act may be cited as the Drug Price Transparency Act of 2023 . 2. Requirements for prescription drug benefits (a) Removal of safe harbor protection for rebates involving prescription drugs and establishment of new safe harbor protections involving prescription drugs (1) Removal of safe harbor protection for rebates involving prescription drugs Section 1128B(b) of the Social Security Act (42 U.S.C. 1320a–7b(b)) is amended— (A) in paragraph (3)(A), by striking a discount and inserting subject to paragraph (5), a discount ; and (B) by adding at the end the following: (5) Removal of safe harbor protection for rebates involving prescription drugs The safe harbor described in paragraph (3)(A) shall not apply to a reduction in price or other remuneration from a manufacturer of prescription drugs to a sponsor of a prescription drug plan under part D of title XVIII, an MA organization offering an MA–PD plan under part C of such title, or a pharmacy benefit manager under contract with such a sponsor or such an organization and, except as provided in subparagraphs (M) and (N) of paragraph (3), paragraphs (1) and (2) shall apply to any such reduction in price or other remuneration. . (2) Establishment of new safe harbor protections involving prescription drugs Section 1128B(b)(3) of the Social Security Act (42 U.S.C. 1320a–7b(b)(3)) is amended— (A) in subparagraph (K), by striking and at the end; (B) in subparagraph (L), by striking the period at the end and inserting a semicolon; and (C) by adding at the end the following: (M) a reduction in price offered by a manufacturer of prescription drugs to a sponsor of a prescription drug plan under part D of title XVIII, an MA organization offering an MA–PD plan under part C of such title, or a pharmacy benefit manager under contract with such a sponsor or such an organization, that is reflected at the point of sale to the individual and meets such other conditions as the Secretary may establish