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Pharmacy Benefit Manager Transparency Act of 2022

This act aims to increase transparency in the prescription drug industry by prohibiting unfair pricing practices by Pharmacy Benefit Managers (PBMs). This means citizens can expect fairer drug prices and better protection against hidden fees, potentially leading to lower healthcare costs. The act also introduces protections for whistleblowers in this industry.
Key points
Prohibition of unfair pricing practices: PBMs cannot charge health plans more for drugs than they reimburse pharmacies, nor arbitrarily reduce payments to pharmacies.
Increased transparency: PBMs must disclose to health plans and pharmacies the cost of drugs, fees charged, and rebates received from manufacturers.
Whistleblower protection: Individuals reporting violations of the act are protected from dismissal, demotion, or other negative consequences.
Enhanced oversight: The Federal Trade Commission (FTC) and state attorneys general can enforce the act, imposing civil penalties of up to $1,000,000 for violations.
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Expired
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Additional Information
Print number: 117_S_4293
Sponsor: Sen. Cantwell, Maria [D-WA]
Process start date: 2022-05-24
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Pharmacy Benefit Manager Transparency Act of 2022

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_4293.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-05-24.

What are the main provisions?

Key points include:

  • Prohibition of unfair pricing practices: PBMs cannot charge health plans more for drugs than they reimburse pharmacies, nor arbitrarily reduce payments to pharmacies.
  • Increased transparency: PBMs must disclose to health plans and pharmacies the cost of drugs, fees charged, and rebates received from manufacturers.
  • Whistleblower protection: Individuals reporting violations of the act are protected from dismissal, demotion, or other negative consequences.
  • Enhanced oversight: The Federal Trade Commission (FTC) and state attorneys general can enforce the act, imposing civil penalties of up to $1,000,000 for violations.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Cantwell, Maria [D-WA].

What is the latest detailed status?

The latest detailed status is: Placed on Senate Legislative Calendar under General Orders. Calendar No. 647.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Health Courts and Law Economy