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Ending Hidden Drug Rebates: New Rules for PBMs and Health Plans.

This bill aims to prohibit secret rebates and other payments (kickbacks) for prescription drugs exchanged between drug manufacturers and Pharmacy Benefits Managers (PBMs) or health insurance plans. This change applies to both federal programs and private insurance, intending to increase transparency in drug pricing. Citizens might see a potential reduction in prescription drug costs or changes in how drug prices are set at pharmacies starting January 1, 2025.
Key points
Prohibits PBMs and health plans from receiving hidden rebates or remuneration from drug manufacturers for prescription drugs.
Removes the legal protection (safe harbor) previously shielding these rebate arrangements under federal healthcare laws.
The new requirements cover all types of health insurance coverage and take effect on January 1, 2025.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 118_S_1217
Sponsor: Sen. Hawley, Josh [R-MO]
Process start date: 2023-04-19
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Ending the Prescription Drug Kickback Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_1217.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-04-19.

What are the main provisions?

Key points include:

  • Prohibits PBMs and health plans from receiving hidden rebates or remuneration from drug manufacturers for prescription drugs.
  • Removes the legal protection (safe harbor) previously shielding these rebate arrangements under federal healthcare laws.
  • The new requirements cover all types of health insurance coverage and take effect on January 1, 2025.
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. Hawley, Josh [R-MO].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Health Economy