119 HR 7895 RH: PBM Kickback Prohibition Act U.S. House of Representatives 2026-07-02 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

IBUnion Calendar No. 634119th CONGRESS2d SessionH. R. 7895[Report No. 119–729]IN THE HOUSE OF REPRESENTATIVESMarch 12, 2026Mr. Allen introduced the following bill; which was referred to the Committee on Education and WorkforceJuly 2, 2026Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printedStrike out all after the enacting clause and insert the part printed in italicFor text of introduced bill, see copy of bill as introduced on March 12, 2026A BILLTo amend section 408 of the Employee Retirement Income Security Act of 1974 to prohibit kickbacks to pharmacy benefit managers.

1.

Short title

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

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.

July 2, 2026Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed