What does Preamble of S 3822 do?

This bill aims to prohibit common ownership between pharmacy benefit managers, insurers, and prescription drug or medical device wholesalers and certain medical service providers. The bill's stated purpose is to address relationships between these entities 'for other purposes'.

What does SHORT TITLE. of S 3822 do?

This bill is formally titled the Break Up Big Medicine Act.

What does FINDINGS. of S 3822 do?

This section outlines findings regarding the consolidation of the American health care system, noting the dominance of large, vertically integrated platforms. It highlights the acquisition strategies of large insurance conglomerates, with one controlling approximately 10% of American physicians. The text states that over three-quarters of American doctors are employed by corporate entities, and a significant portion of the drug distribution market is controlled by a few large wholesalers. Pharmacy benefit managers (PBMs) are identified as key players, with the three largest processing nearly 80% of prescription drug claims and being integrated into larger platforms. The findings emphasize inherent conflicts of interest arising from vertical integration, such as steering patients to affiliated providers and pharmacies. The section suggests that these practices can lead to increased prescription drug costs, evasion of profit limits, and inflated payments to the Federal Government. Congress asserts its constitutional authority to regulate interstate commerce and intends to regulate these corporate health care platforms in the public interest. The section proposes structural separation of vertically integrated health conglomerates to eliminate conflicts of interest and restore competition. It outlines measures including divestiture requirements for parent companies owning insurers, PBMs, wholesalers, and medical providers, as well as enabling civil actions for enforcement.

What does PROHIBITIONS RELATING TO ANTICOMPETITIVE OWNERSHIP AND of S 3822 do?

This section prohibits common ownership of providers and pharmacy benefit managers, or providers and prescription drug/medical device wholesalers. Entities violating the prohibition must divest assets within one year of the Act's enactment. The Federal Trade Commission and the Antitrust Division have joint jurisdiction to enforce this section. The FTC Chair and Assistant Attorney General must issue guidance on divestment milestones within 30 days of enactment. Failure to meet divestment milestones results in a monthly transfer of 10% of profits into escrow. Individuals can bring civil actions for damages resulting from violations, potentially receiving treble damages and attorney's fees. State attorneys general can bring civil actions on behalf of residents if state interests are threatened. Any revenue disgorged will be deposited into a fund and used to address healthcare needs in the harmed community.

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Break Up Big Medicine Act — S. 3822

Last updated: 2/10/2026 · Introduced: 2/10/2026

Author: Elizabeth Warren (D-MA)

TL;DR (AI)

This bill prohibits common ownership between healthcare providers and pharmacy benefit managers, or between providers and prescription drug/medical device wholesalers to reduce conflicts of interest.
Companies violating these ownership prohibitions must divest assets within one year, with financial penalties for failing to meet divestment milestones.
Individuals and state attorneys general can bring civil actions for damages resulting from violations, with potential for increased financial recovery.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 2 more.

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