[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7535 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 7535

 To require the Comptroller General of the United States to conduct a 
  study and submit a report on price-related compensation and payment 
           structures in the prescription drug supply chain.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 5, 2024

 Ms. Caraveo (for herself and Mr. Mann) introduced the following bill; 
  which was referred to the Committee on Energy and Commerce, and in 
    addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
 To require the Comptroller General of the United States to conduct a 
  study and submit a report on price-related compensation and payment 
           structures in the prescription drug supply chain.

    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 ``Prescription Drug Supply Chain 
Pricing Transparency Act''.

SEC. 2. GAO STUDY AND REPORT ON PRICE-RELATED COMPENSATION AND PAYMENT 
              STRUCTURES IN THE PRESCRIPTION DRUG SUPPLY CHAIN.

    Section 1860D-42 of the Social Security Act (42 U.S.C. 1395w-152) 
is amended by adding at the end the following new subsection:
    ``(e) GAO Study and Report on Price-Related Compensation and 
Payment Structures in the Prescription Drug Supply Chain.--
            ``(1) Study.--The Comptroller General of the United States 
        (in this subsection referred to as the `Comptroller General') 
        shall conduct a study on the use of compensation and payment 
        structures related to a prescription drug's price within the 
        retail prescription drug supply chain. Such study shall include 
        an overview of the following:
                    ``(A) The type, magnitude, other features (such as 
                the pricing benchmarks used), and prevalence of 
                compensation and payment structures related to a 
                prescription drug's price, such as calculating fee 
                amounts as a percentage of a prescription drug's price, 
                between intermediaries in the prescription drug supply 
                chain, including--
                            ``(i) pharmacy benefit managers;
                            ``(ii) part D plan sponsors;
                            ``(iii) drug wholesalers;
                            ``(iv) pharmacies;
                            ``(v) manufacturers;
                            ``(vi) pharmacy services administrative 
                        organizations;
                            ``(vii) brokers, auditors, consultants, and 
                        other entities that advise part D plan sponsors 
                        about pharmacy benefits or review part D plan 
                        sponsor contracts with pharmacy benefit 
                        managers; and
                            ``(viii) other service providers that 
                        contract with any of the entities described in 
                        clauses (i) through (vii), including rebate 
                        aggregators (or other entities that negotiate 
                        or process price concessions on behalf of 
                        pharmacy benefit managers or plan sponsors).
                    ``(B) The primary business models and compensation 
                structures for each category of intermediary described 
                in subparagraph (A).
                    ``(C) Variation in price-related compensation 
                structures between affiliated entities (such as 
                entities with common ownership, either full or partial, 
                and subsidiary relationships) and unaffiliated 
                entities.
                    ``(D) Potential conflicts of interest among 
                contracting entities related to the use of prescription 
                drug price-related compensation structures, such as the 
                potential for fees or other payments set as a 
                percentage of a prescription drug's price to advantage 
                the formulary selection, distribution, or purchasing of 
                prescription drugs with higher prices.
                    ``(E) Patterns and trends in price-based 
                compensation structures over time and between different 
                market segments, such as under this part and the 
                Medicaid program under title XIX.
                    ``(F) The factors driving the consideration and use 
                of price-related compensation structures in the 
                prescription drug supply chain.
                    ``(G) Other issues determined to be relevant and 
                appropriate by the Comptroller General.
            ``(2) Report.--Not later than 2 years after the date of 
        enactment of this subsection, the Comptroller General shall 
        submit to Congress a report containing the results of the study 
        conducted under paragraph (1), together with recommendations 
        for such legislation and administrative action as the 
        Comptroller General determines appropriate.''.
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