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H. R. 7895 To amend section 408 of the Employee Retirement Income Security Act of 1974 to prohibit kickbacks to pharmacy benefit managers.
Summary
- Prohibits pharmacy benefit managers from paying direct or indirect compensation to individuals or entities for referring, recommending, placing, or providing access to employee health plan business.
- Prohibits payments by pharmacy benefit managers for participation in or design of requests for proposals, market checks, evaluations, or other contracting processes related to plan business.
- Requires that compensation to or from pharmacy benefit managers be evaluated based on its economic substance and practical operation, not how the parties characterize or label it.
- Creates a presumption that payments from pharmacy benefit managers to brokers, consultants, advisors, and related entities are kickbacks unless the parties prove the payments reflect fair market value for legitimate services.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Sponsor (1)
Money behind the sponsor
Top reported contributors to Rick W. Allen’s campaign committee (2024 cycle) — who funds the bill’s sponsor, not a claim about this bill. Data from FEC.
- NULL $19,594
- OSCAR'S LIQUOR $7,000
- YANCEY BROS. CO. $6,600
- MACUCH STEEL PRODUCTS $6,600
- HILLWOOD $6,600
Organizations whose employees gave the most — itemized individual contributions grouped by the donor’s reported employer (FEC Schedule A). Full finance for Rick W. Allen → · Outside spending →
Actions (6)
- Jul 2, 2026 Placed on the Union Calendar, Calendar No. 634. · house
- Jul 2, 2026 Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-729. · house
- May 21, 2026 Ordered to be Reported (Amended) by the Yeas and Nays: 34 - 0. · house
- May 21, 2026 Committee Consideration and Mark-up Session Held · house
- Mar 12, 2026 Referred to the House Committee on Education and Workforce. · house
- Mar 12, 2026 Introduced in House
Similar bills (6)
Bills with similar text or summary — includes reintroductions across Congresses. Ranked by semantic similarity of the bill text (computed locally); a neutral discovery aid, not a claim the bills are duplicates.
Committee action
What happened to this bill in committee — the meetings where it was considered and every recorded vote taken on it.
As published:Roll Call Vote #11 | H.R. 7895 | DESAULNIER_HR7895_AMD_1 (DESAULNIER) | Failed (15y-19n)
As published:Roll Call Vote #12 | H.R. 7895 (Allen) | Motion to Report as Amended | Passed (34y-0n)
Meetings where this bill was on the agenda
Full text
IN THE HOUSE OF REPRESENTATIVES
March 12, 2026
Mr. Allen introduced the following bill; which was referred to the Committee on Education and Workforce
July 2, 2026
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed [Strike out all after the enacting clause and insert the part printed in italic] [For text of introduced bill, see copy of bill as introduced on March 12, 2026]
A BILL
To amend section 408 of the Employee Retirement Income Security Act of 1974 to prohibit kickbacks to pharmacy benefit managers.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “PBM Kickback Prohibition Act”.
SEC. 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 following:
“(xi)(I) In the case of a contract or arrangement between a covered plan and a covered service provider for pharmacy benefit management services, no amount of compensation (whether direct compensation or indirect compensation) may be paid by such service provider to any individual or entity for— “(aa) the referral, recommendation, placement, retention, or renewal of, or access to, the business of the covered plan or the health insurance issuer offering health insurance coverage for the covered plan; “(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 in such items.”.
(b) Effective Date.—The amendment made by this section shall apply for plan years beginning after the date of enactment of this Act. Union Calendar No. 634
119th CONGRESS
2d Session
H. R. 7895
[Report No. 119-729]
A BILL
To amend section 408 of the Employee Retirement Income Security Act of 1974 to prohibit kickbacks to pharmacy benefit managers.
July 2, 2026
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed
Comments