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Panel unanimously backs PBM kickback prohibition after bipartisan rewrite; scope debate continues
Summary
The committee adopted an amendment-in-the-nature-of-a-substitute to HR7895 to bar pharmacy benefit managers from paying referral kickbacks to brokers and consultants and ordered the bill reported; members urged broader scope but voted to move the bill forward (reported 34–0).
The committee adopted an amendment in the nature of a substitute to HR7895, the PBM Kickback Prohibition Act, and voted to report the bill to the House (reported 34–0). Sponsor Representative Rick Allen and the ranking member supported action to prohibit opaque referral payments that can steer employers to particular PBMs and raise costs for patients and plan sponsors.
During markup, members debated the legislative scope. Supporters said the rewrite closed earlier loopholes that might have let PBMs relabel payments to avoid the prohibition; the ranking member and others urged expanding the bill's reach beyond PBMs to include other covered service providers (insurers, third‑party administrators) who have also been reported paying steering fees. An amendment to broaden the scope was rejected in committee after debate; the committee nevertheless adopted the cleaner PBM‑focused prohibition and ordered the measure reported unanimously.
The bill as reported would prohibit PBMs from paying referral fees to brokers and consultants in exchange for steering employers toward those PBMs and directs enforcement mechanisms in ERISA to address violations. The committee said staff could make technical edits before transmittal.
