PBM Kickback Prohibition Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7895 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7895

To amend section 408 of the Employee Retirement Income Security Act of
        1974 to prohibit kickbacks to pharmacy benefit managers.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 12, 2026

  Mr. Allen introduced the following bill; which was referred to the
                  Committee on Education and Workforce

_______________________________________________________________________

                                 A BILL

To amend section 408 of the Employee Retirement Income Security Act of
        1974 to prohibit kickbacks to pharmacy benefit managers.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``PBM Kickback Prohibition Act''.

SEC. 2. PBM KICKBACK PROHIBITION.

    (a) In General.--Section 408(b)(2)(B) of the Employee Retirement
Income Security Act (29 U.S.C. 1108(b)(2)(B)) is amended by adding at
the end the following:
            ``(x) In the case of a contract or arrangement between a
        covered plan and a covered service provider for pharmacy
        benefit management services, no amount of compensation may be
        paid, directly or indirectly, by such service provider to a
        brokerage firm, broker, consultant, advisor, or any other
        individual for the referral of the covered plan's or health
        insurance issuer's business to the covered service provider.''.
    (b) Effective Date.--The amendment made by this section shall apply
for plan years beginning after the date of enactment of this Act.
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