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Ending Hidden Drug Fees: New Rules for Pharmacy Benefit Managers

This act aims to lower prescription drug costs for citizens by changing how Pharmacy Benefit Managers (PBMs) earn revenue. Starting in 2026, PBMs will only be allowed to charge flat service fees, preventing them from profiting from drug prices or rebates. This is intended to increase transparency and fairness in the drug market, potentially reducing out-of-pocket expenses for prescriptions.
Key points
PBMs will only be allowed to charge flat service fees, not based on drug prices or discounts, to prevent inflated costs.
Steering patients to PBM-owned pharmacies will be prohibited if it increases costs for the patient or health plan.
PBMs cannot charge health plans more for a drug's ingredient cost or dispensing fee than they reimburse pharmacies.
Violations will incur civil monetary penalties of $10,000 per day and require disgorgement of improperly received payments.
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Additional Information
DRUG Act
Print number: HR 6283
Sponsor: Rep. Miller-Meeks, Mariannette [R-IA-1]
Process start date: 2023-11-08