Sponsors
The bill seeks to lower drug costs and increase procurement transparency by banning PBM-to-broker kickbacks, but may shift costs onto employers/enrollees and shrink income/competition among smaller brokerages.
Patients with chronic conditions could pay lower prescription drug costs because eliminating PBM kickbacks to brokers reduces incentives to select higher-cost formularies or plans.
Health plans and issuers (and the hospitals/health systems that work with them) would face more transparent procurement and supplier selection, potentially improving plan value for enrollees.
Employers and enrollees (including middle-class families and taxpayers) could see higher premiums or additional fees if PBMs and brokers increase administrative charges or seek new revenue sources to replace eliminated kickbacks.
Small brokerages and consultants that relied on kickback compensation could lose income, reducing competition in plan brokerage services and potentially concentrating market power among larger firms.
Based on analysis of 2 sections of legislative text.
Prohibits PBMs from paying brokers, consultants, or advisors any direct or indirect compensation for referring a covered plan's or issuer's business to the PBM.
Introduced March 12, 2026 by Rick W. Allen · Last progress March 12, 2026
Prohibits pharmacy benefit managers (PBMs) from giving any direct or indirect compensation to brokers, brokerage firms, consultants, advisors, or other individuals for referring a covered plan's or health insurance issuer's business to the PBM. The ban applies to contracts and arrangements between covered plans and PBMs and takes effect for plan years beginning after the date of enactment.