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

<DOC>





                                                 Union Calendar No. 634
119th CONGRESS
  2d Session
                                H. R. 7895

                          [Report No. 119-729]

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

                              July 2, 2026

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                               12, 2026]


_______________________________________________________________________

                                 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. PROHIBITION ON PHARMACY BENEFIT MANAGER KICKBACKS.

    (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:
            ``(xi)(I) 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 (whether 
        direct compensation or indirect compensation) may be paid by 
        such service provider to any individual or entity for--
                    ``(aa) the referral, recommendation, placement, 
                retention, or renewal of, or access to, the business of 
                the covered plan or the health insurance issuer 
                offering health insurance coverage for the covered 
                plan;
                    ``(bb) inclusion in, participation in, or the 
                design of--
                            ``(AA) a request for proposal;
                            ``(BB) a market check;
                            ``(CC) an evaluation;
                            ``(DD) the volume, value, or use of covered 
                        plan business; or
                            ``(EE) any other contracting process.
            ``(II) For the purposes of this clause, the 
        characterization of compensation shall be based on the economic 
        substance and practical operation of the contract or 
        arrangement, without regard to the characterization or labeling 
        of the compensation by the covered service provider.
            ``(III) Any compensation paid by a covered service provider 
        to a brokerage firm, broker, consultant, advisor, or related 
        entity shall be presumed to be related to an activity described 
        in item (aa) or (bb) of subclause (I) unless the parties 
        demonstrate through contemporaneous written documentation that 
        such compensation--
                    ``(aa) reflects fair market value for bona fide 
                services actually rendered; and
                    ``(bb) is not related, directly or indirectly, to 
                any activity described in such items.''.
    (b) Effective Date.--The amendment made by this section shall apply 
for plan years beginning after the date of enactment of this Act.
                                                 Union Calendar No. 634

119th CONGRESS

  2d Session

                               H. R. 7895

                          [Report No. 119-729]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                              July 2, 2026

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed