A PBM administering prescription drug benefits under a Federal health care program shall not— (1) engage in steering; (2) engage in any practice that restricts a beneficiary from using any in-network pharmacy ... (3) charge a beneficiary more ... (4) require a beneficiary to obtain a brand name prescription drug when a lower cost, AB-rated generic version ... is available; (5) engage in spread pricing; (6) lower, impose a fee, or otherwise make an adjustment ... that in any way reduces the amount a pharmacy is reimbursed
Prohibit PBMs administering federal health care prescription drug benefits from steering patients, restricting in-network pharmacy choice, spread pricing, overcharging beneficiaries, forcing brand-name drugs when lower-cost AB-rated generics are available, and reducing pharmacy reimbursement through claim adjustments or fees.
Occurrences
The bill states that a PBM administering prescription drug benefits under a Federal health care program shall not engage in steering; restrict a beneficiary from using any in-network pharmacy; charge a beneficiary more than pharmacy reimbursement; require a brand-name drug when a lower-cost AB-rated generic is available; engage in spread pricing; or reduce pharmacy reimbursement through claim adjustments or fees.
Evidence
The Globe reported that Rep. Jake Auchincloss had introduced a comprehensive PBM bill for federal government-run insurance plans. It said the bill would stop PBMs from requiring affiliated pharmacies, require a pricing metric for pharmacy reimbursement, prohibit brand-over-generic requirements, and eliminate some payment practices that incentivize higher prices.
Congress.gov lists H.R.7148 as law and records: Latest Action: 02/03/2026 Became Public Law No: 119-75. It also records House passage, Senate passage, House agreement to Senate amendments, presentation to the President, and enactment.
The enacted text requires Medicare Part D PBMs, beginning in 2028, to have written agreements and bars PBMs and affiliates from deriving remuneration for covered Part D drug services other than bona fide service fees, with rebates and discounts allowed only if fully passed through to the PDP sponsor. It also requires disgorgement of violating remuneration.
The enacted text requires reporting when a listed brand drug is covered and generic drugs referencing it are not covered, are placed on the same or higher-cost formulary tier, or face utilization management not applied to the listed drug. It also requires estimated beneficiary cost-sharing and written justification for more favorable coverage of the listed drug.
The enacted text requires PBMs with affiliated retail, mail-order, or specialty pharmacies to report the percentage of prescriptions dispensed by affiliated pharmacies, cost ranges for affiliated and non-affiliated pharmacies, the lowest total combined cost available in-network, and an explanation of benefit designs that encourage enrollees to use affiliated pharmacies.
The Washington Post reported that President Trump signed a government funding bill with PBM reforms, including transparency requirements, a ban on spread pricing in commercial health plans, and a prohibition on tying PBM compensation to the price of Medicare-covered medications. It also reported that additional PBM issues remained outside the law.
The Wall Street Journal reported that the House version of the Patients Before Monopolies Act was sponsored by Rep. Jake Auchincloss and Rep. Diana Harshbarger, and that the bill would require companies owning insurers or PBMs to divest pharmacy businesses. It also reported the two had previously teamed on legislation aimed at PBM steering to affiliated pharmacies.
Assessments
The promise called for a broad set of federal PBM prohibitions across steering, pharmacy choice, spread pricing, beneficiary overcharges, brand-over-generic requirements, and reimbursement clawbacks or fees. Later enacted federal PBM provisions addressed some related issues, including Medicare Part D PBM compensation limits, pass-through/disgorgement rules, transparency around affiliated pharmacy use, and reporting on brand-over-generic formulary treatment, but they did not directly enact the full set of promised prohibitions. Auchincloss also pursued closely related PBM legislation, supporting candidate effort, but the comprehensive promise was only partly achieved.