1 | 1 | | I |
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2 | 2 | | 119THCONGRESS |
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3 | 3 | | 1 |
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4 | 4 | | STSESSION H. R. 2214 |
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5 | 5 | | To improve services provided by pharmacy benefit managers. |
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6 | 6 | | IN THE HOUSE OF REPRESENTATIVES |
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7 | 7 | | MARCH18, 2025 |
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8 | 8 | | Mrs. M |
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9 | 9 | | ILLER-MEEKS(for herself, Ms. BARRAGA´N, Ms. MALLIOTAKIS, Mr. |
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10 | 10 | | S |
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11 | 11 | | CHNEIDER, Mr. ALLEN, and Mr. NORCROSS) introduced the following |
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12 | 12 | | bill; which was referred to the Committee on Energy and Commerce, and |
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13 | 13 | | in addition to the Committees on Ways and Means, and Education and |
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14 | 14 | | Workforce, for a period to be subsequently determined by the Speaker, |
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15 | 15 | | in each case for consideration of such provisions as fall within the juris- |
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16 | 16 | | diction of the committee concerned |
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17 | 17 | | A BILL |
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18 | 18 | | To improve services provided by pharmacy benefit managers. |
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19 | 19 | | Be it enacted by the Senate and House of Representa-1 |
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20 | 20 | | tives of the United States of America in Congress assembled, 2 |
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21 | 21 | | SECTION 1. SHORT TITLE. 3 |
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22 | 22 | | This Act may be cited as the ‘‘Delinking Revenue 4 |
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23 | 23 | | from Unfair Gouging Act’’ or the ‘‘DRUG Act’’. 5 |
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24 | 24 | | SEC. 2. IMPROVING PHARMACY BENEFIT MANAGER SERV-6 |
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25 | 25 | | ICES. 7 |
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26 | 26 | | (a) P |
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27 | 27 | | UBLICHEALTHSERVICEACT.—Part D of title 8 |
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28 | 28 | | XXVII of the Public Health Service Act (42 U.S.C. 9 |
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30 | 30 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 |
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31 | 31 | | •HR 2214 IH |
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32 | 32 | | 300gg–111 et seq.) is amended by adding at the end the 1 |
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33 | 33 | | following: 2 |
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34 | 34 | | ‘‘SEC. 2799A–11. IMPROVING PHARMACY BENEFIT MANAGER 3 |
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35 | 35 | | SERVICES. 4 |
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36 | 36 | | ‘‘(a) I |
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37 | 37 | | NGENERAL.—Beginning on January 1, 2027, 5 |
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38 | 38 | | except as provided in subsection (b), a pharmacy benefit 6 |
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39 | 39 | | manager shall derive no remuneration from any entity for 7 |
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40 | 40 | | services, benefit administration, or any other activities re-8 |
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41 | 41 | | lated to prescription drug benefits under a group health 9 |
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42 | 42 | | plan or group or individual health insurance coverage. 10 |
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43 | 43 | | ‘‘(b) E |
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44 | 44 | | XCEPTION FORBONAFIDESERVICEFEES.— 11 |
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45 | 45 | | ‘‘(1) I |
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46 | 46 | | N GENERAL.—A pharmacy benefit man-12 |
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47 | 47 | | ager may charge an entity a bona fide service fee for 13 |
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48 | 48 | | the provision of services to such entity only if such 14 |
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49 | 49 | | fee is set forth in an agreement between the phar-15 |
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50 | 50 | | macy benefit manager and such entity and the 16 |
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51 | 51 | | amount of any bona fide service fee— 17 |
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52 | 52 | | ‘‘(A) is a flat dollar amount; and 18 |
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53 | 53 | | ‘‘(B) is not directly or indirectly based on, 19 |
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54 | 54 | | or contingent upon— 20 |
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55 | 55 | | ‘‘(i) a drug price (such as wholesale 21 |
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56 | 56 | | acquisition cost) or drug benchmark price 22 |
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57 | 57 | | (such as average wholesale price); 23 |
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58 | 58 | | ‘‘(ii) the amount of discounts, rebates, 24 |
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59 | 59 | | fees, or other direct or indirect remunera-25 |
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61 | 61 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 |
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62 | 62 | | •HR 2214 IH |
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63 | 63 | | tion with respect to prescription drugs pre-1 |
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64 | 64 | | scribed to the participants, beneficiaries, or 2 |
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65 | 65 | | enrollees in the group health plan or health 3 |
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66 | 66 | | insurance coverage involved; or 4 |
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67 | 67 | | ‘‘(iii) any other amounts specified by 5 |
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68 | 68 | | the Secretary, the Secretary of Labor, and 6 |
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69 | 69 | | the Secretary of the Treasury; 7 |
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70 | 70 | | ‘‘(2) D |
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71 | 71 | | EFINITIONS.—In this section— 8 |
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72 | 72 | | ‘‘(A) the term ‘bona fide service fee’ means 9 |
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73 | 73 | | a fee that is equal to the fair market value of 10 |
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74 | 74 | | a bona fide, itemized service that is actually 11 |
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75 | 75 | | performed on behalf of an entity, that the enti-12 |
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76 | 76 | | ty would otherwise perform (or contract for) in 13 |
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77 | 77 | | the absence of the service arrangement, and 14 |
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78 | 78 | | that is not passed on in whole or in part to a 15 |
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79 | 79 | | client or customer, whether or not the entity 16 |
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80 | 80 | | takes title to the drug; and 17 |
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81 | 81 | | ‘‘(B) the term ‘pharmacy benefit manager’ 18 |
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82 | 82 | | means any person, business, or other entity, 19 |
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83 | 83 | | such as a third-party administrator, regardless 20 |
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84 | 84 | | of whether it identifies itself as a pharmacy 21 |
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85 | 85 | | benefit manager, that, either directly or 22 |
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86 | 86 | | through an intermediary (including an affiliate, 23 |
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87 | 87 | | subsidiary, or agent) or an arrangement with a 24 |
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88 | 88 | | third-party— 25 |
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90 | 90 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 |
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91 | 91 | | •HR 2214 IH |
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92 | 92 | | ‘‘(i) acts a price negotiator for pre-1 |
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93 | 93 | | scription drugs on behalf of a group health 2 |
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94 | 94 | | plan or health insurance issuer offering 3 |
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95 | 95 | | group or individual health insurance cov-4 |
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96 | 96 | | erage; or 5 |
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97 | 97 | | ‘‘(ii) manages or administers the pre-6 |
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98 | 98 | | scription drug benefits provided by a group 7 |
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99 | 99 | | health plan or health insurance issuer of-8 |
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100 | 100 | | fering group or individual health insurance 9 |
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101 | 101 | | coverage, including creating formularies, 10 |
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102 | 102 | | the processing and payment of claims for 11 |
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103 | 103 | | prescription drugs, arranging alternative 12 |
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104 | 104 | | access to or funding for prescription drugs, 13 |
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105 | 105 | | the performance of drug utilization review, 14 |
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106 | 106 | | the processing of drug prior authorization 15 |
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107 | 107 | | requests, the adjudication of appeals or 16 |
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108 | 108 | | grievances related to the prescription drug 17 |
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109 | 109 | | benefit, contracting with network phar-18 |
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110 | 110 | | macies (including retail and mail phar-19 |
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111 | 111 | | macies), controlling the cost of covered 20 |
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112 | 112 | | prescription drugs, or the provision of re-21 |
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113 | 113 | | lated services. 22 |
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114 | 114 | | ‘‘(c) E |
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115 | 115 | | NFORCEMENT.— 23 |
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117 | 117 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 |
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118 | 118 | | •HR 2214 IH |
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119 | 119 | | ‘‘(1) IN GENERAL.—The Secretary, in consulta-1 |
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120 | 120 | | tion with the Secretary of Labor and the Secretary 2 |
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121 | 121 | | of the Treasury, shall enforce this section. 3 |
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122 | 122 | | ‘‘(2) D |
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123 | 123 | | ISGORGEMENT.—The pharmacy benefit 4 |
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124 | 124 | | manager shall disgorge to a group health plan or 5 |
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125 | 125 | | health insurance issuer offering group or individual 6 |
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126 | 126 | | health insurance coverage any payment, remunera-7 |
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127 | 127 | | tion, or other amount received by the pharmacy ben-8 |
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128 | 128 | | efit manager or an affiliate of such pharmacy benefit 9 |
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129 | 129 | | manager from such plan or issuer in violation of 10 |
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130 | 130 | | subsection (a) or, pursuant to subsection (b), the 11 |
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131 | 131 | | agreement entered into with such plan or issuer for 12 |
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132 | 132 | | bona fide service fees. 13 |
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133 | 133 | | ‘‘(3) P |
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134 | 134 | | ENALTIES.—A pharmacy benefit man-14 |
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135 | 135 | | ager that violates subsection (a) or (b) shall be sub-15 |
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136 | 136 | | ject to a civil monetary penalty in the amount of 16 |
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137 | 137 | | $10,000 for each day during which such violation 17 |
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138 | 138 | | continues. 18 |
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139 | 139 | | ‘‘(4) P |
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140 | 140 | | ROCEDURE.—Notwithstanding section 19 |
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141 | 141 | | 2723, the provisions of section 1128A of the Social 20 |
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142 | 142 | | Security Act, other than subsection (a) and (b) and 21 |
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143 | 143 | | the first sentence of subsection (c)(1) of such sec-22 |
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144 | 144 | | tion, shall apply to civil monetary penalties under 23 |
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145 | 145 | | this subsection in the same manner as such provi-24 |
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147 | 147 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 |
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148 | 148 | | •HR 2214 IH |
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149 | 149 | | sions apply to a penalty or proceeding under section 1 |
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150 | 150 | | 1128A of the Social Security Act. 2 |
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151 | 151 | | ‘‘(d) R |
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152 | 152 | | EGULATIONS.—Notwithstanding any other 3 |
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153 | 153 | | provision of law, the Secretary, in consultation with the 4 |
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154 | 154 | | Secretary of Labor and the Secretary of the Treasury, 5 |
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155 | 155 | | shall implement this section through interim final regula-6 |
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156 | 156 | | tions. 7 |
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157 | 157 | | ‘‘(e) R |
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158 | 158 | | ULES OFCONSTRUCTION.—Nothing in this 8 |
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159 | 159 | | section shall be construed— 9 |
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160 | 160 | | ‘‘(1) as prohibiting payments related to reim-10 |
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161 | 161 | | bursement for ingredient costs to entities that ac-11 |
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162 | 162 | | quire prescription drugs or pharmacy dispensing 12 |
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163 | 163 | | fees; and 13 |
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164 | 164 | | ‘‘(2) to prohibit rebates, discounts, or other 14 |
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165 | 165 | | price concessions from being fully passed through to 15 |
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166 | 166 | | a group health plan or health insurance issuer offer-16 |
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167 | 167 | | ing group or individual health insurance coverage to 17 |
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168 | 168 | | lower net costs for prescription drugs.’’. 18 |
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169 | 169 | | (b) ERISA.— 19 |
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170 | 170 | | (1) I |
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171 | 171 | | N GENERAL.—Subpart B of part 7 of sub-20 |
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172 | 172 | | title B of title I of the Employee Retirement Income 21 |
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173 | 173 | | Security Act of 1974 (29 U.S.C. 1185 et seq.) is 22 |
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174 | 174 | | amended by inserting after section 725 the fol-23 |
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175 | 175 | | lowing: 24 |
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177 | 177 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 |
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178 | 178 | | •HR 2214 IH |
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179 | 179 | | ‘‘SEC. 726. IMPROVING PHARMACY BENEFIT MANAGER 1 |
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180 | 180 | | SERVICES. 2 |
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181 | 181 | | ‘‘(a) G |
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182 | 182 | | ENERAL.—Beginning on January 1, 2027, ex-3 |
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183 | 183 | | cept as provided in subsection (b), a pharmacy benefit 4 |
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184 | 184 | | manager shall derive no remuneration from any entity for 5 |
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185 | 185 | | services, benefit administration, or any other activities re-6 |
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186 | 186 | | lated to prescription drug benefits under a group health 7 |
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187 | 187 | | plan or group health insurance coverage. 8 |
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188 | 188 | | ‘‘(b) E |
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189 | 189 | | XCEPTION FORBONAFIDESERVICEFEES.— 9 |
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190 | 190 | | ‘‘(1) I |
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191 | 191 | | N GENERAL.—A pharmacy benefit man-10 |
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192 | 192 | | ager may charge an entity a bona fide service fee for 11 |
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193 | 193 | | the provision of services to an entity only if such fee 12 |
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194 | 194 | | is set forth in an agreement between the pharmacy 13 |
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195 | 195 | | benefit manager and such entity and the amount of 14 |
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196 | 196 | | any bona fide service fee— 15 |
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197 | 197 | | ‘‘(A) is a flat dollar amount; and 16 |
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198 | 198 | | ‘‘(B) is not directly or indirectly based on, 17 |
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199 | 199 | | or contingent upon— 18 |
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200 | 200 | | ‘‘(i) a drug price (such as wholesale 19 |
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201 | 201 | | acquisition cost) or drug benchmark price 20 |
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202 | 202 | | (such as average wholesale price); 21 |
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203 | 203 | | ‘‘(ii) the amount of discounts, rebates, 22 |
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204 | 204 | | fees, or other direct or indirect remunera-23 |
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205 | 205 | | tion with respect to prescription drugs pre-24 |
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206 | 206 | | scribed to the participants, beneficiaries, or 25 |
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208 | 208 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 |
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209 | 209 | | •HR 2214 IH |
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210 | 210 | | enrollees in the group health plan or health 1 |
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211 | 211 | | insurance coverage involved; or 2 |
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212 | 212 | | ‘‘(iii) any other amounts specified by 3 |
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213 | 213 | | the Secretary, the Secretary of Health and 4 |
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214 | 214 | | Human Services, and the Secretary of the 5 |
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215 | 215 | | Treasury. 6 |
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216 | 216 | | ‘‘(2) D |
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217 | 217 | | EFINITIONS.—In this section— 7 |
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218 | 218 | | ‘‘(A) the term ‘bona fide service fee’ means 8 |
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219 | 219 | | a fee that is equal to the fair market value of 9 |
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220 | 220 | | a bona fide, itemized service that is actually 10 |
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221 | 221 | | performed on behalf of an entity, that the enti-11 |
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222 | 222 | | ty would otherwise perform (or contract for) in 12 |
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223 | 223 | | the absence of the service arrangement, and 13 |
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224 | 224 | | that is not passed on in whole or in part to a 14 |
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225 | 225 | | client or customer, whether or not the entity 15 |
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226 | 226 | | takes title to the drug; and 16 |
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227 | 227 | | ‘‘(B) the term ‘pharmacy benefit manager’ 17 |
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228 | 228 | | means any person, business, or other entity, 18 |
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229 | 229 | | such as a third-party administrator, regardless 19 |
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230 | 230 | | of whether it identifies itself as a pharmacy 20 |
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231 | 231 | | benefit manager, that, either directly or 21 |
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232 | 232 | | through an intermediary (including an affiliate, 22 |
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233 | 233 | | subsidiary, or agent) or an arrangement with a 23 |
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234 | 234 | | third-party— 24 |
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236 | 236 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 |
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237 | 237 | | •HR 2214 IH |
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238 | 238 | | ‘‘(i) acts a price negotiator for pre-1 |
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239 | 239 | | scription drugs on behalf of a group health 2 |
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240 | 240 | | plan or health insurance issuer offering 3 |
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241 | 241 | | group health insurance coverage; or 4 |
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242 | 242 | | ‘‘(ii) manages or administers the pre-5 |
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243 | 243 | | scription drug benefits provided by a group 6 |
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244 | 244 | | health plan or health insurance issuer of-7 |
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245 | 245 | | fering group health insurance coverage, in-8 |
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246 | 246 | | cluding creating formularies, the proc-9 |
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247 | 247 | | essing and payment of claims for prescrip-10 |
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248 | 248 | | tion drugs, arranging alternative access to 11 |
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249 | 249 | | or funding for prescription drugs, the per-12 |
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250 | 250 | | formance of drug utilization review, the 13 |
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251 | 251 | | processing of drug prior authorization re-14 |
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252 | 252 | | quests, the adjudication of appeals or 15 |
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253 | 253 | | grievances related to the prescription drug 16 |
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254 | 254 | | benefit, contracting with network phar-17 |
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255 | 255 | | macies (including retail and mail phar-18 |
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256 | 256 | | macies), controlling the cost of covered 19 |
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257 | 257 | | prescription drugs, or the provision of re-20 |
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258 | 258 | | lated services. 21 |
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259 | 259 | | ‘‘(c) E |
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260 | 260 | | NFORCEMENT.—The Secretary shall enforce 22 |
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261 | 261 | | this section as provided for in section 502(c)(13). 23 |
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262 | 262 | | ‘‘(d) R |
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263 | 263 | | EGULATIONS.—Notwithstanding any other 24 |
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264 | 264 | | provision of law, the Secretary, in consultation with the 25 |
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266 | 266 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 |
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267 | 267 | | •HR 2214 IH |
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268 | 268 | | Secretary of Health and Human Services and the Sec-1 |
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269 | 269 | | retary of the Treasury, shall implement this section 2 |
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270 | 270 | | through interim final regulations. 3 |
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271 | 271 | | ‘‘(e) R |
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272 | 272 | | ULES OFCONSTRUCTION.—Nothing in this 4 |
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273 | 273 | | section shall be construed— 5 |
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274 | 274 | | ‘‘(1) as prohibiting payments related to reim-6 |
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275 | 275 | | bursement for ingredient costs to entities that ac-7 |
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276 | 276 | | quire prescription drugs or pharmacy dispensing 8 |
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277 | 277 | | fees; and 9 |
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278 | 278 | | ‘‘(2) to prohibit rebates, discounts, or other 10 |
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279 | 279 | | price concessions from being fully passed through to 11 |
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280 | 280 | | a group health plan or health insurance issuer offer-12 |
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281 | 281 | | ing group health insurance coverage to lower net 13 |
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282 | 282 | | costs for prescription drugs.’’. 14 |
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283 | 283 | | (2) E |
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284 | 284 | | NFORCEMENT.—Section 502 of the Em-15 |
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285 | 285 | | ployee Retirement Income Security Act of 1974 (29 16 |
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286 | 286 | | U.S.C. 1132) is amended— 17 |
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287 | 287 | | (A) in subsection (a)(6), by striking ‘‘or 18 |
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288 | 288 | | (9)’’ and inserting ‘‘(9), or (13)’’; and 19 |
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289 | 289 | | (B) in subsection (c), by adding at the end 20 |
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290 | 290 | | the following: 21 |
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291 | 291 | | ‘‘(13) S |
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292 | 292 | | ECRETARIALENFORCEMENTAUTHORITYRE-22 |
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293 | 293 | | LATING TOPHARMACYBENEFITMANAGERSERVICES.— 23 |
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294 | 294 | | ‘‘(A) D |
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295 | 295 | | ISGORGEMENT.—With respect to a viola-24 |
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296 | 296 | | tion of section 726 by a pharmacy benefit manager, 25 |
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298 | 298 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 11 |
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299 | 299 | | •HR 2214 IH |
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300 | 300 | | such pharmacy benefit manager shall disgorge to a 1 |
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301 | 301 | | group health plan or health insurance issuer offering 2 |
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302 | 302 | | group health insurance coverage any payment, remu-3 |
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303 | 303 | | neration, or other amount received by the pharmacy 4 |
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304 | 304 | | benefit manager or an affiliate of such pharmacy 5 |
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305 | 305 | | benefit manager from such plan or issuer in viola-6 |
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306 | 306 | | tion of subsection (a) of such section or, pursuant to 7 |
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307 | 307 | | subsection (b) of such section, the agreement en-8 |
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308 | 308 | | tered into with such plan or issuer for bona fide 9 |
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309 | 309 | | service fees. 10 |
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310 | 310 | | ‘‘(B) P |
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311 | 311 | | ENALTIES.—A pharmacy benefit man-11 |
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312 | 312 | | ager that violates subsection (a) or (b) of section 12 |
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313 | 313 | | 726 shall be subject to a civil monetary penalty in 13 |
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314 | 314 | | the amount of $10,000 for each day during which 14 |
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315 | 315 | | such violation continues. 15 |
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316 | 316 | | ‘‘(C) P |
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317 | 317 | | ROCEDURE.—Except as provided in this 16 |
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318 | 318 | | paragraph, the provisions of this section shall apply 17 |
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319 | 319 | | to civil monetary penalties under this paragraph in 18 |
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320 | 320 | | the same manner as such provisions apply to other 19 |
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321 | 321 | | civil penalties under this section. 20 |
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322 | 322 | | ‘‘(D) R |
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323 | 323 | | ULE OF CONSTRUCTION .—Nothing in 21 |
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324 | 324 | | this paragraph shall effect the authority of the Sec-22 |
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325 | 325 | | retary under subsection (a)(5).’’. 23 |
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326 | 326 | | (3) C |
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327 | 327 | | LERICAL AMENDMENT .—The table of con-24 |
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328 | 328 | | tents in section 1 of the Employee Retirement In-25 |
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330 | 330 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 12 |
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331 | 331 | | •HR 2214 IH |
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332 | 332 | | come Security Act of 1974 (29 U.S.C. 1001 et seq.) 1 |
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333 | 333 | | is amended by inserting after the item relating to 2 |
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334 | 334 | | section 725 the following new item: 3 |
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335 | 335 | | Sec. 726. Improving pharmacy benefit manager services. |
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336 | 336 | | (c) INTERNALREVENUECODE OF1986.— 4 |
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337 | 337 | | (1) I |
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338 | 338 | | N GENERAL.—Subchapter B of chapter 5 |
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339 | 339 | | 100 of the Internal Revenue Code of 1986 is amend-6 |
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340 | 340 | | ed by adding at the end the following: 7 |
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341 | 341 | | ‘‘SEC. 9826. IMPROVING PHARMACY BENEFIT MANAGER 8 |
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342 | 342 | | SERVICES. 9 |
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343 | 343 | | ‘‘(a) I |
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344 | 344 | | NGENERAL.—Beginning on January 1, 2027, 10 |
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345 | 345 | | except as provided in subsection (b), a pharmacy benefit 11 |
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346 | 346 | | manager shall derive no remuneration from any entity for 12 |
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347 | 347 | | services, benefit administration, or any other activities re-13 |
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348 | 348 | | lated to prescription drug benefits under a group health 14 |
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349 | 349 | | plan. 15 |
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350 | 350 | | ‘‘(b) E |
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351 | 351 | | XCEPTION FORBONAFIDESERVICEFEES.— 16 |
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352 | 352 | | ‘‘(1) I |
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353 | 353 | | N GENERAL.—A pharmacy benefit man-17 |
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354 | 354 | | ager may charge an entity a bona fide service fee for 18 |
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355 | 355 | | the provision of services to such entity only if such 19 |
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356 | 356 | | fee is set forth in an agreement between the phar-20 |
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357 | 357 | | macy benefit manager and such entity and the 21 |
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358 | 358 | | amount of any bona fide service fee— 22 |
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359 | 359 | | ‘‘(A) is a flat dollar amount; and 23 |
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360 | 360 | | ‘‘(B) is not directly or indirectly based on, 24 |
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361 | 361 | | or contingent upon— 25 |
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363 | 363 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 13 |
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364 | 364 | | •HR 2214 IH |
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365 | 365 | | ‘‘(i) a drug price (such as wholesale 1 |
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366 | 366 | | acquisition cost) or drug benchmark price 2 |
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367 | 367 | | (such as average wholesale price); 3 |
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368 | 368 | | ‘‘(ii) the amount of discounts, rebates, 4 |
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369 | 369 | | fees, or other direct or indirect remunera-5 |
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370 | 370 | | tion with respect to prescription drugs pre-6 |
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371 | 371 | | scribed to the participants, beneficiaries, or 7 |
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372 | 372 | | enrollees in the group health plan involved; 8 |
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373 | 373 | | or 9 |
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374 | 374 | | ‘‘(iii) any other amounts specified by 10 |
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375 | 375 | | the Secretary, the Secretary of Health and 11 |
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376 | 376 | | Human Services, and the Secretary of the 12 |
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377 | 377 | | Labor. 13 |
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378 | 378 | | ‘‘(2) D |
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379 | 379 | | EFINITIONS.—In this section— 14 |
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380 | 380 | | ‘‘(A) the term ‘bona fide service fee’ means 15 |
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381 | 381 | | a fee that is equal to the fair market value of 16 |
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382 | 382 | | a bona fide, itemized service that is actually 17 |
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383 | 383 | | performed on behalf of an entity, that the enti-18 |
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384 | 384 | | ty would otherwise perform (or contract for) in 19 |
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385 | 385 | | the absence of the service arrangement, and 20 |
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386 | 386 | | that is not passed on in whole or in part to a 21 |
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387 | 387 | | client or customer, whether or not the entity 22 |
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388 | 388 | | takes title to the drug; and 23 |
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389 | 389 | | ‘‘(B) the term ‘pharmacy benefit manager’ 24 |
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390 | 390 | | means any person, business, or other entity 25 |
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392 | 392 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 14 |
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393 | 393 | | •HR 2214 IH |
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394 | 394 | | such as a third-party administrator, regardless 1 |
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395 | 395 | | of whether it identifies itself as a pharmacy 2 |
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396 | 396 | | benefit manager, that, either directly or 3 |
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397 | 397 | | through an intermediary (including an affiliate, 4 |
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398 | 398 | | subsidiary, or agent) or an arrangement with a 5 |
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399 | 399 | | third-party— 6 |
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400 | 400 | | ‘‘(i) acts as a price negotiator for pre-7 |
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401 | 401 | | scription drugs on behalf of a group health 8 |
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402 | 402 | | plan; or 9 |
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403 | 403 | | ‘‘(ii) manages or administers the pre-10 |
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404 | 404 | | scription drug benefits provided by a group 11 |
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405 | 405 | | health plan, including creating formularies, 12 |
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406 | 406 | | the processing and payment of claims for 13 |
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407 | 407 | | prescription drugs, arranging alternative 14 |
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408 | 408 | | access to or funding for prescription drugs, 15 |
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409 | 409 | | the performance of drug utilization review, 16 |
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410 | 410 | | the processing of drug prior authorization 17 |
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411 | 411 | | requests, the adjudication of appeals or 18 |
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412 | 412 | | grievances related to the prescription drug 19 |
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413 | 413 | | benefit, contracting with network phar-20 |
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414 | 414 | | macies, controlling the cost of covered pre-21 |
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415 | 415 | | scription drugs, or the provision of related 22 |
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416 | 416 | | services. 23 |
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417 | 417 | | ‘‘(c) E |
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418 | 418 | | NFORCEMENT.— 24 |
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420 | 420 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 15 |
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421 | 421 | | •HR 2214 IH |
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422 | 422 | | ‘‘(1) IN GENERAL.—The Secretary, in consulta-1 |
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423 | 423 | | tion with the Secretary of Health and Human Serv-2 |
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424 | 424 | | ices and the Secretary of Labor, shall enforce this 3 |
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425 | 425 | | section. 4 |
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426 | 426 | | ‘‘(2) D |
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427 | 427 | | ISGORGEMENT.—The pharmacy benefit 5 |
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428 | 428 | | manager shall disgorge to a group health plan any 6 |
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429 | 429 | | payment, remuneration, or other amount received by 7 |
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430 | 430 | | the pharmacy benefit manager or an affiliate of such 8 |
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431 | 431 | | pharmacy benefit manager from such plan or issuer 9 |
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432 | 432 | | in violation of subsection (a) or, pursuant to sub-10 |
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433 | 433 | | section (b), the agreement entered into with such 11 |
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434 | 434 | | plan for bona fide service fees. 12 |
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435 | 435 | | ‘‘(3) P |
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436 | 436 | | ENALTIES.—A pharmacy benefit man-13 |
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437 | 437 | | ager that violates subsection (a) or (b) shall be sub-14 |
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438 | 438 | | ject to a civil monetary penalty in the amount of 15 |
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439 | 439 | | $10,000 for each day during which such violation 16 |
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440 | 440 | | continues. 17 |
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441 | 441 | | ‘‘(4) P |
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442 | 442 | | ROCEDURE.—The provisions of section 18 |
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443 | 443 | | 1128A of the Social Security Act, other than sub-19 |
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444 | 444 | | section (a) and (b) and the first sentence of sub-20 |
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445 | 445 | | section (c)(1) of such section, shall apply to civil 21 |
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446 | 446 | | monetary penalties under this subsection in the 22 |
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447 | 447 | | same manner as such provisions apply to a penalty 23 |
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448 | 448 | | or proceeding under section 1128A of the Social Se-24 |
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449 | 449 | | curity Act. 25 |
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451 | 451 | | kjohnson on DSK7ZCZBW3PROD with $$_JOB 16 |
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452 | 452 | | •HR 2214 IH |
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453 | 453 | | ‘‘(d) REGULATIONS.—Notwithstanding any other 1 |
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454 | 454 | | provision of law, the Secretary, in consultation with the 2 |
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455 | 455 | | Secretary of Health and Human Services and the Sec-3 |
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456 | 456 | | retary of Labor, shall implement this section through in-4 |
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457 | 457 | | terim final regulations.’’. 5 |
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458 | 458 | | (2) C |
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459 | 459 | | LERICAL AMENDMENT .—The table of sec-6 |
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460 | 460 | | tions for subchapter B of chapter 100 of the Inter-7 |
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461 | 461 | | nal Revenue Code of 1986 is amended by adding at 8 |
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462 | 462 | | the end the following new item: 9 |
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463 | 463 | | ‘‘Sec. 9826. Improving pharmacy benefit manager services.’’. |
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464 | 464 | | Æ |
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