What does Preamble of PBM Act do?

This bill aims to prohibit common ownership of pharmacy benefit managers and pharmacies The bill was introduced to the Senate and referred to the Committee on the Judiciary

What does SHORT TITLE. of PBM Act do?

This bill is formally titled the Patients Before Monopolies Act.

What does FINDINGS. of PBM Act do?

This section outlines findings regarding pharmacy benefit managers (PBMs) and their role in pharmaceutical supply chains. The market for PBM services is highly concentrated, with the six largest PBMs integrated into large health care conglomerates. Some of the largest PBMs are vertically integrated, encompassing health insurance, pharmacies, and providers. The Federal Trade Commission has found that vertically integrated PBMs may steer business to affiliated pharmacies, reducing competition and increasing drug costs. PBMs are alleged to pressure independent pharmacies into unfavorable contracts, contributing to pharmacy closures. There are concerns that PBMs may use transfer pricing to evade profit limits (Medical Loss Ratio) and cost taxpayers money. Congress asserts its constitutional authority to regulate interstate commerce related to PBMs. The section recommends structural separation of vertically integrated health conglomerates to eliminate conflicts of interest and restore competition. Proposed actions include requiring divestiture of pharmacy businesses, enabling civil actions to enforce separation, and granting additional authority to federal agencies to review transactions.

What does PROHIBITIONS RELATING TO ANTICOMPETITIVE PHARMACY OWNERSHIP AND of PBM Act do?

This section prohibits entities from both owning a pharmacy and owning or controlling an insurance company or pharmacy benefit manager. Entities violating the prohibition must divest the pharmacy within one year of the Act's enactment. The Federal Trade Commission and the Assistant Attorney General for the Antitrust Division have jurisdiction to enforce this section. The FTC and DOJ must issue guidance within 30 days of enactment specifying milestones for divestment. Failure to meet divestment milestones results in 10% of profits being placed in escrow. A civil action may be brought by the Inspector General of HHS, the Assistant Attorney General, the FTC, or a state attorney general. Individuals can bring a civil action alleging damages, potentially receiving treble damages and attorney's fees. The FTC is required to promulgate rules to carry out this section and submit quarterly reports on compliance. The Act defines key terms including 'pharmacy,' 'pharmacy benefit manager,' and 'health plan'.

Back to bills

PBM Act

Last updated: 5/13/2026 · Introduced: 5/13/2026

Author: Elizabeth Warren (D-MA)

TL;DR (AI)

The bill prohibits entities from owning both a pharmacy and an insurance company or pharmacy benefit manager, requiring divestment within one year of enactment.
Entities that fail to meet divestment milestones will have 10% of their profits placed in escrow, and may face civil actions and penalties.
The Federal Trade Commission is tasked with enforcing the prohibition, issuing guidance, and promulgating rules to carry out the section, with quarterly reports on compliance required.

119th Congressin committeeHR. 8779(In Committee)Official page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

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

4 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account