PBM Kickback Prohibition Act

Rick W. Allen

Republican · GA · Representative

Source: Congress.gov · FEC

No cosponsors on record. Bills can pass without cosponsors — this often means the sponsor introduced the bill alone, either because it's a messaging bill, a chairman's mark, or simply early in the legislative cycle.

Ordered to be Reported (Amended) by the Yeas and Nays: 34 - 0.

2026-05-21

Source: Congress.gov

This bill would ban pharmacy benefit managers (the companies that handle prescription drug coverage for insurance plans) from accepting payments or rebates from drug manufacturers in ways that could incentivize them to favor expensive drugs over cheaper alternatives. The goal is to reduce hidden kickback arrangements that can drive up drug prices for patients and employers. The measure would affect insurance companies, pharmacies, drug makers, and anyone with prescription drug coverage.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

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

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