summary
Introduced
03/18/2025
03/18/2025
In Committee
03/18/2025
03/18/2025
Crossed Over
Passed
Dead
Introduced Session
119th Congress
Bill Summary
A BILL To improve services provided by pharmacy benefit managers.
AI Summary
This bill, known as the DRUG Act (Delinking Revenue from Unfair Gouging Act), aims to fundamentally change how pharmacy benefit managers (PBMs) are compensated and operate. Beginning January 1, 2027, the bill prohibits PBMs from receiving remuneration from entities for services related to prescription drug benefits, with a narrow exception for "bona fide service fees." These fees must be a flat dollar amount and cannot be based on drug prices, rebates, discounts, or other indirect compensation related to prescription drugs. A PBM can only charge a fee that represents the fair market value of a specific, itemized service that the entity would otherwise perform, and the fee cannot be passed on to customers. The bill defines PBMs broadly, including any entity that negotiates drug prices or manages prescription drug benefits for health plans. Violations of these rules can result in significant penalties, including mandatory disgorgement of improper payments and civil monetary penalties of $10,000 per day. The bill applies to group health plans and health insurance coverage, and it amends sections of the Public Health Service Act, the Employee Retirement Income Security Act, and the Internal Revenue Code to implement these changes, with enforcement to be conducted by the Secretaries of Health and Human Services, Labor, and Treasury through interim final regulations.
Committee Categories
Business and Industry
Sponsors (6)
Mariannette Miller-Meeks (R)*,
Rick Allen (R),
Nanette Barragán (D),
Nicole Malliotakis (R),
Donald Norcross (D),
Brad Schneider (D),
Last Action
Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (on 03/18/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.congress.gov/bill/119th-congress/house-bill/2214/all-info |
BillText | https://www.congress.gov/119/bills/hr2214/BILLS-119hr2214ih.pdf |
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