The PBM Act would prohibit companies from simultaneously owning a pharmacy benefit manager (PBM), insurance company, or pharmacy. Companies currently violating this rule would have one year from the bill's enactment to divest either their pharmacy operations or their PBM/insurance businesses. The legislation addresses concerns that large health conglomerates use their control over drug pricing and insurance to steer customers to their own pharmacies, reducing competition and raising drug costs while contributing to the closure of thousands of independent pharmacies. The Federal Trade Commission and Department of Justice would enforce the requirement and could impose penalties of 10 percent of monthly profits in escrow if companies miss divestment deadlines, with funds going to a health care community fund if the deadline passes. The bill also creates a private right of action allowing individuals and state attorneys general to sue for damages, with prevailing plaintiffs eligible for triple damages and attorney's fees.
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