PBM Kickback Prohibition Act

119 HR 7895 IH: PBM Kickback Prohibition Act U.S. House of Representatives 2026-03-12 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. I 119th CONGRESS 2d Session H. R. 7895 IN THE HOUSE OF REPRESENTATIVES March 12, 2026 Mr. Allen introduced the following bill; which was referred to the Committee on Education and Workforce A BILL To 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. PBM Kickback prohibition (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: (x) 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 may be paid, directly or indirectly, by such service provider to a brokerage firm, broker, consultant, advisor, or any other individual for the referral of the covered plan’s or health insurance issuer's business to the covered service provider. . (b) Effective date The amendment made by this section shall apply for plan years beginning after the date of enactment of this Act.