Federal News
Congress Introduces PBM Kickback Prohibition Act
March 13, 2026
Congressman Rick W. Allen introduced the PBM Kickback Prohibition Act aimed at amending the Employee Retirement Income Security Act (ERISA) to prohibit pharmacy benefit managers (PBMs) from paying kickbacks to intermediaries for directing business. This legislation is part of the broader presidential initiative known as the 'Great Healthcare Plan' focused on lowering prescription drug prices and increasing transparency in health insurance costs. The bill targets practices that may inflate insurance costs through undisclosed financial incentives, signaling potential regulatory changes affecting healthcare procurement and insurance contracting.
- Why this matters: Procurement professionals in healthcare and insurance sectors should anticipate changes in contracting practices with PBMs and intermediaries that could affect pricing structures and compliance requirements.
- The legislation may lead to increased transparency mandates and restrictions on financial arrangements within pharmacy benefit management, impacting contract negotiations and vendor relationships.
- Organizations involved in health insurance procurement should evaluate current agreements for potential exposure to kickback-related risks and prepare for compliance with new prohibitions if enacted.
- This development underscores congressional focus on healthcare cost containment, which may influence future procurement policies and regulatory frameworks in the healthcare industry.
The Trump Administration and House Republicans are laser-focused on lowering prescription drug prices and making health insurance more affordable. The PBM Kickback Prohibition Act1a signature component of the President's 'Great Healthcare Plan'1would rein in PBMs by ending kickbacks that deceptively raise the cost of health insurance for patients, workers, and families.
— Congressman Rick W. Allen
Agencies
U.S. House of Representatives