H.R. 7895 · On the floor · Health

PBM Kickback Prohibition Act

Sponsor: Rick W. Allen (R-GA)

What it does

• Amends ERISA section 408(b)(2)(B) to prohibit pharmacy benefit managers from paying direct or indirect compensation to any individual or entity for referrals, recommendations, or placement of covered plan business.
• Prohibits pharmacy benefit managers from compensating brokers, consultants, or related entities for participation in requests for proposal, market checks, evaluations, or other contracting processes related to covered plan business.
• Requires compensation paid by pharmacy benefit managers to brokers, consultants, or advisors to be presumed kickback-related unless parties provide contemporaneous written documentation proving fair market value for bona fide services rendered.
• Applies the kickback prohibition to plan years beginning after the date of enactment.

Latest action

Jul 2, 2026: Placed on the Union Calendar, Calendar No. 634.

Committee: House Education and Workforce