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H. Rept. 119-729 1 (2026-07-02)

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                     119TH CONGRESS                                           REPORT
                        2d Session   j  HOUSE   OF REPRESENTATIVES            119-729






                                   PBM   KICKBACK PROHIBITION ACT



                       JULY 2, 2026.-Committed to the Committee of the Whole House on the State of
                                         the Union and ordered to be printed



                      Mr.  WALBERG,   from the Committee   on Education   and Workforce,
                                           submitted   the following


                                               REPORT

                                                 together with

                                            ADDITIONAL VIEWS

                                            [To accompany H.R. 7895]

                       The  Committee   on  Education  and  Workforce,  to  whom   was  re-
                     ferred the bill (H.R. 7895)  to amend   section 408 of the  Employee
                     Retirement   Income  Security  Act of 1974  to prohibit  kickbacks  to
                     pharmacy   benefit managers,   having  considered  the same,  reports
                     favorably  thereon with  an  amendment and recommends that the
                     bill as amended  do pass.
                       The  amendment is   as follows:
                       Strike all after the enacting clause and insert the following:
                     SECTION 1. SHORT TITLE.
                       This Act may be cited as the PBM Kickback Prohibition Act.
                     SEC. 2. PROHIBITION ON PHARMACY BENEFIT MANAGER KICKBACKS.
                       (a) IN GENERAL.-Section 408(b)(2)(B) of the Employee Retirement Income Secu-
                     rity Act (29 U.S.C. 1108(b)(2)(B)) is amended by adding at the end the following:
                          (xi)(I) In the case of a contract or arrangement between a covered plan and
                        a  covered service provider for pharmacy benefit management services, no
                        amount  of compensation (whether direct compensation or indirect compensa-
                        tion) may be paid by such service provider to any individual or entity for-
                              (aa) the referral, recommendation, placement, retention, or renewal of,
                            or access to, the business of the covered plan or the health insurance issuer
                            offering health insurance coverage for the covered plan;
                              (bb) inclusion in, participation in, or the design of-
                                 (AA) a request for proposal;
                                 (BB) a market check;
                                 (CC) an evaluation;
                                 (DD) the volume, value, or use of covered plan business; or
                                 (EE) any other contracting process.


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