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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.
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Status:
Expired
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Additional Information
Print number: 118_S_1217
Sponsor: Sen. Hawley, Josh [R-MO]
Process start date: 2023-04-19
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
AI work logs for this document launch

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.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Health Economy