This bill seeks to address the growing issue of vertical integration and consolidation within the American healthcare system. It identifies that large corporate entities, including health insurance conglomerates, pharmacy benefit managers (PBMs), and drug/medical device wholesalers, increasingly own or control various parts of the healthcare supply chain, from insurance plans to medical providers. This extensive consolidation, the bill argues, creates inherent conflicts of interest that can lead to anti-competitive practices, inflated costs for patients, and potentially lower quality of care. Specifically, the bill makes it unlawful for any person to simultaneously own or control a medical provider or management services organization (MSO) and either an insurance company or pharmacy benefit manager . Similarly, it prohibits common ownership between a provider or MSO and a prescription drug or medical device wholesaler . Entities found in violation must divest one side of their commonly owned operations within one year of the Act's enactment to restore market competition. To ensure compliance, the legislation grants enforcement authority to the Federal Trade Commission (FTC) , the Assistant Attorney General in charge of the Antitrust Division , and State attorneys general . It also establishes a private right of action , allowing individuals harmed by violations to seek treble damages and other relief. Non-compliant entities face penalties, including monthly escrow of 10 percent of profits and potential trustee-led divestiture. The FTC and Department of Justice are further empowered to review divestitures and block future actions that could re-create these prohibited conflicts of interest, aiming to protect patients, physicians, and taxpayers.
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Timeline
Introduced in Senate
Read twice and referred to the Committee on the Judiciary.
Introduced in Senate
Read twice and referred to the Committee on the Judiciary.
Health
Break Up Big Medicine Act
USA119th CongressS-3822| Senate
| Updated: 2/10/2026
This bill seeks to address the growing issue of vertical integration and consolidation within the American healthcare system. It identifies that large corporate entities, including health insurance conglomerates, pharmacy benefit managers (PBMs), and drug/medical device wholesalers, increasingly own or control various parts of the healthcare supply chain, from insurance plans to medical providers. This extensive consolidation, the bill argues, creates inherent conflicts of interest that can lead to anti-competitive practices, inflated costs for patients, and potentially lower quality of care. Specifically, the bill makes it unlawful for any person to simultaneously own or control a medical provider or management services organization (MSO) and either an insurance company or pharmacy benefit manager . Similarly, it prohibits common ownership between a provider or MSO and a prescription drug or medical device wholesaler . Entities found in violation must divest one side of their commonly owned operations within one year of the Act's enactment to restore market competition. To ensure compliance, the legislation grants enforcement authority to the Federal Trade Commission (FTC) , the Assistant Attorney General in charge of the Antitrust Division , and State attorneys general . It also establishes a private right of action , allowing individuals harmed by violations to seek treble damages and other relief. Non-compliant entities face penalties, including monthly escrow of 10 percent of profits and potential trustee-led divestiture. The FTC and Department of Justice are further empowered to review divestitures and block future actions that could re-create these prohibited conflicts of interest, aiming to protect patients, physicians, and taxpayers.