[Congressional Record Volume 168, Number 133 (Saturday, August 6, 2022)]
[Senate]
[Page S4335]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5392. Mr. MARSHALL submitted an amendment intended to be proposed 
to amendment SA 5194 proposed by Mr. Schumer to the bill H.R. 5376, to 
provide for reconciliation pursuant to title II of S. Con. Res. 14; 
which was ordered to lie on the table; as follows:

        At the end of part 5 of subtitle B of title I, add the 
     following:

     SEC. 11406. REQUIREMENTS RELATING TO PAYMENT OF PHARMACY 
                   BENEFIT MANAGERS UNDER MEDICARE PART D.

       (a) Prescription Drug Plans.--Section 1860D-12(b) of the 
     Social Security Act (42 U.S.C. 1395w-112(b)) is amended by 
     adding at the end the following new paragraph:
       ``(8) Payment of pharmacy benefit managers.--
       ``(A) In general.--Each contract entered into with a PDP 
     sponsor under this part with respect to a prescription drug 
     plan offered by such sponsor shall provide that any pharmacy 
     benefit manager (or affiliate, subsidiary, or agent of a 
     pharmacy benefit manager) that manages prescription drug 
     coverage under a contract with such sponsor, shall not 
     receive fees from any entity or individual other than bona 
     fide service fees.
       ``(B) Definition of bona fide service fees.--For purposes 
     of this paragraph, `bona fide service fees' represent fair 
     market value for a bona fide, itemized service actually 
     performed on behalf of the fee recipient, that the recipient 
     would otherwise perform (or contract for) in the absence of 
     the service arrangement with the pharmacy benefit manager, 
     and that the pharmacy benefit manager does not pass on to 
     another party. A bona fide service fee must be a flat fixed 
     fee that is not based on, contingent upon, or otherwise 
     related to--
       ``(i) drug price, such as wholesale acquisition cost or 
     drug benchmark price (such as average wholesale price);
       ``(ii) discounts, rebates, fees, or other remuneration with 
     respect to prescription drugs dispensed to enrollees; or
       ``(iii) any other amounts prohibited by the Secretary.''.
       (b) MA-PD Plans.--Section 1857(f)(3) of the Social Security 
     Act (42 U.S.C. 1395w-27(f)(3)) is amended by adding at the 
     end the following new subparagraph:
       ``(E) Payment of pharmacy benefit managers.--Section 1860D-
     12(b)(8).''.
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