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H.R. 2214

BillFederalHouseIn Committee
DRUG Act
About This Bill
Committee
Latest Action · March 18, 2025
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.
Congress
119th (2025–2027)
Introduced
March 18, 2025
Cosponsors (6)
4D 2R
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Summary

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H.R. 2214, the "Delinking Revenue from Unfair Gouging Act" (DRUG Act), restricts how pharmacy benefit managers (PBMs) can be paid for managing prescription drug benefits in health plans. Beginning January 1, 2027, PBMs would be prohibited from receiving most payments from insurers or health plans except for flat-rate "bona fide service fees" that are not tied to drug prices, discounts, rebates, or other drug-related financial metrics. This affects employers offering health coverage and individuals with health insurance, as well as the PBM industry, which currently earns significant revenue from rebates and price-based fees. Violations would result in civil penalties of $10,000 per day, with the Department of Health and Human Services, Department of Labor, and Treasury Department responsible for enforcement. The legislation carves out exceptions for ingredient cost reimbursements and pharmacy dispensing fees, and requires that any rebates or discounts be passed through to plans to lower drug costs.

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