U.S. Congress legislation · 119th Congress
HB7895: PBM Kickback Prohibition Act
Status: In committee, July 2, 2026
To amend section 408 of the Employee Retirement Income Security Act of 1974 to prohibit kickbacks to pharmacy benefit managers.
What the bill says
To amend section 408 of the Employee Retirement Income Security Act of 1974 to prohibit kickbacks to pharmacy benefit managers.
From the committee substitute text, July 2, 2026:
A BILL To amend section 408 of the Employee Retirement Income Security Act of 1974 to prohibit kickbacks to pharmacy benefit managers. SECTION 1. Short title This Act may be cited as the PBM Kickback Prohibition Act . SECTION 2. Prohibition on pharmacy benefit manager kickbacks (a) In general Section 408(b)(2)(B) of the Employee Retirement Income Security Act ( 29 U.S.C. 1108(b)(2)(B) ) is amended by adding at the end the (bb) inclusion in, participation in, or the design of-- (AA) a request for proposal; (BB) a market check; (CC) an evaluation; (DD) the volume, value, or use of covered plan business; or (EE) any other contracting process. (II) For the purposes of this clause, the characterization of compensation shall be based on the economic substance and practical operation of the contract or arrangement, without regard to the characterization or labeling of the compensation by the covered service provider. (III) Any compensation paid by a covered service provider to a brokerage firm, broker, consultant, advisor, or related entity shall be presumed to be related to an activity described in item (aa) or (bb) of subclause (I) unless the parties demonstrate through contemporaneous written documentation that such compensation-- (aa) reflects fair market value for bona fide services actually rendered; and (bb) is not related, directly or indirectly, to any activity described …
Sponsors
- Rick Allen (R, HD-012) · primary sponsor
Latest actions
- : Placed on the Union Calendar, Calendar No. 634.
- : Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-729.
- : Ordered to be Reported (Amended) by the Yeas and Nays: 34 - 0.
- : Committee Consideration and Mark-up Session Held
- : Referred to the House Committee on Education and Workforce.
- : Introduced in House
Subjects: Fraud offenses and financial crimes, Health personnel, Health, Prescription drugs, Health care costs and insurance
Common questions
- What is HB7895?
- HB7895 is a bill in Congress (119th Congress): PBM Kickback Prohibition Act.
- What does HB7895 do?
- In its own words: To amend section 408 of the Employee Retirement Income Security Act of 1974 to prohibit kickbacks to pharmacy benefit managers.
- What is the status of HB7895?
- In committee as of July 2, 2026. Latest action: Placed on the Union Calendar, Calendar No. 634. (July 2, 2026).
- Who sponsored HB7895?
- Rick Allen (R, HD-012).
- Where is the official record for HB7895?
- On the Congress website: https://www.congress.gov/bill/119th-congress/house-bill/7895
Source: official Congress record. Tracked by Delilah, AI for legislation across all 50 states and Congress.