Rep. Allen Introduces Bill to Ban Kickbacks for Pharmacy Benefit Managers
This bill is currently in the early stages of the legislative process and is being reviewed by the House Committee on Education and Workforce. It was recently introduced and is actively moving forward. There are no other scheduled actions at this time.
While there is strong interest in lowering drug costs, most individual bills like this get stuck in committee unless they are added to a larger healthcare package.
Many union members receive health benefits through ERISA-covered plans. By removing hidden kickbacks in PBM selection, the bill could improve the value of pharmacy benefits in these plans. Union health trusts that use brokers to select PBMs would get advice that is less clouded by financial conflicts of interest.
Referred to the House Committee on Education and Workforce.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
Congressman Rick Allen introduced the PBM Kickback Prohibition Act, a key part of President Trump's 'Great Healthcare Plan.' The bill aims to end kickbacks from PBMs to brokers that raise insurance costs for families by creating conflicts of interest in plan selection.
Industry experts are analyzing the PBM Kickback Prohibition Act and broader reforms within the Great Healthcare Plan. A primary focus is the ban on referral fees paid to brokers, which proponents argue will force PBMs to compete on value rather than hidden financial incentives.
While the White House framework includes popular provisions like banning PBM kickbacks to brokers, Politico reports that a lack of Democratic cooperation and strict Senate rules may prevent the 'Great Healthcare Plan' from reaching the President's desk in its current form.
Document Type
Congressional Bill
Official Title
PBM Kickback Prohibition Act
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