S127-118

Reported

To prevent unfair and deceptive acts or practices and the dissemination of false information related to pharmacy benefit management services for prescription drugs, and for other purposes.

118th Congress Introduced Jan 26, 2023

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

Prohibits pharmacy benefit managers from spread pricing (charging plans more than reimbursing pharmacies) and arbitrary clawbacks of pharmacy payments. Increases prescription drug pricing transparency.

Who Benefits and How

Pharmacies protected from unfair PBM practices. Health plans know true drug costs. Consumers benefit from transparent pricing.

Who Bears the Burden and How

PBMs lose spread pricing revenue. PBM business model disrupted. Compliance requirements increased.

Key Provisions

  • Bans spread pricing by PBMs
  • Prohibits arbitrary clawbacks of pharmacy reimbursements
  • Prevents fee increases to offset federal program changes

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.

At a Glance

What This Bill Does

Prohibits unfair PBM practices including spread pricing and clawbacks

Who Benefits

  • Pharmacies
  • Health plans
  • Consumers

Who Bears Costs

  • PBMs
  • PBM business model

Key Policy Areas

Healthcare, Pharmacy, PBM Regulation

Primary Purpose

Prohibits unfair PBM practices including spread pricing and clawbacks

Policy Domains

Healthcare Pharmacy PBM Regulation

Legislative Strategy

"Eliminate unfair PBM practices through prohibition"

Legislative Progress

Reported
Introduced Committee Passed
Dec 13, 2023

Reported by Ms. Cantwell, with an amendment

Jan 26, 2023

Ms. Cantwell (for herself, Mr. Grassley, Mrs. Hyde-Smith, Mr. Braun, …

Jan 26, 2023

Ms. Cantwell (for herself, Mr. Grassley, Mrs. Hyde-Smith, Mr. Braun, …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Pharmacy Benefit Management
11 mentions across 11 clauses
-11 negative

Pharmacy Benefit Managers, Pharmacy Benefit Managers (CVS Caremark, Express Scripts, OptumRx)

Healthcare
4 mentions across 4 clauses
+4 positive

Independent pharmacies, PBM and health plan employees (whistleblowers)

Government
4 mentions across 4 clauses
-4 negative

Federal Trade Commission

State & Local Government
3 mentions across 3 clauses
+3 positive

State Attorneys General, States with PBM regulations

Financial Services
2 mentions across 2 clauses
+2 positive

Health insurance plans

Healthcare Beneficiaries
1 mention across 1 clause
+1 positive

Patients using prescription drugs

16/17
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Healthcare Pharmacy PBM

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology