PBM Act

This legislation aims to prevent conflicts of interest and promote competition in the pharmaceutical supply chain by prohibiting common ownership between pharmacy benefit managers (PBMs) or insurance companies and pharmacies. It mandates that any entity currently in violation must divest its pharmacy holdings within one year of the bill's enactment. The bill's findings highlight that vertical integration allows PBMs to self-preference affiliated pharmacies, leading to reduced competition, increased drug costs for patients, and potential evasion of profit limits. To ensure compliance, the Federal Trade Commission (FTC) and the Department of Justice (DOJ) are granted joint or separate jurisdiction for enforcement. Non-compliance with divestment milestones can result in 10 percent of a person's profits being transferred into escrow monthly, potentially leading to forced divestiture by a trustee. The bill also establishes a private right of action for individuals harmed by violations, allowing them to seek treble damages and other relief, while state attorneys general can bring civil actions on behalf of their residents. The FTC and DOJ will also review all divestitures and retain authority to block future actions that could re-create these anti-competitive conflicts.