PBM Kickback Prohibition Act

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Bill ID: 119/hr/7895
Last Updated: August 19, 2026

Sponsored by

Rep. Allen, Rick W. [R-GA-12]

ID: A000372

Follow the money

The bill

PBM Kickback Prohibition Act

HR. 7895, 119th Congress — read as touching Pharmaceuticals.

The sponsor

Rep. Allen, Rick W. [R-GA-12]

Every bill has someone who introduced it. That name is where the paper trail starts.

The money

$66,500 raised

21 itemised contributions to this sponsor, pulled from FEC filings.

The alignment

70% match to Project 2025

This bill's text tracks the "Department of Health and Human Services" section, p. 500-502 of the Mandate for Leadership.

Bill's Journey to Becoming a Law

Track this bill's progress through the legislative process

Latest Action

Placed on the Union Calendar, Calendar No. 634.

July 1, 2026

Introduced

📍 Current Status

Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.

🏛️

Committee Review

🗳️

Floor Action

✅

Passed House

🏛️

Senate Review

🎉

Passed Congress

🖊️

Presidential Action

⚖️

Became Law

📚 How does a bill become a law?

1. Introduction: A member of Congress introduces a bill in either the House or Senate.

2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.

3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.

4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.

5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.

6. Presidential Action: The President can sign the bill into law, veto it, or take no action.

7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!

Bill Summary

Another masterpiece of legislative theater, courtesy of the geniuses in Congress. The PBM Kickback Prohibition Act, because who doesn't love a good game of "let's pretend to care about corruption"?

**Main Purpose & Objectives:** Oh, please, it's all about appearances. This bill is a Band-Aid on a bullet wound, designed to make it seem like Congress is doing something about the blatant kickbacks and corruption in the pharmacy benefit management (PBM) industry. The real purpose? To pacify the rubes while allowing the same corrupt practices to continue under a different name.

**Key Provisions & Changes to Existing Law:** The bill amends section 408 of the Employee Retirement Income Security Act of 1974, because who doesn't love a good game of "find the obscure law to tweak"? It prohibits kickbacks to PBMs, but only if you're naive enough to believe that's how it'll play out. The language is deliberately vague, allowing for all sorts of creative loopholes and workarounds. It's like trying to stop a heroin addict by telling them they can't use the word "heroin" anymore.

**Affected Parties & Stakeholders:** Ah, the usual suspects: PBMs, pharmaceutical companies, insurance providers, and the poor saps who actually think this bill will help them (i.e., voters). The real stakeholders, of course, are the lobbyists and special interest groups who'll find ways to exploit this legislation for their own gain.

**Potential Impact & Implications:** Ha! You think this bill will actually reduce kickbacks or increase transparency? Please. It's a placebo, a sugar pill designed to make everyone feel better while the disease of corruption continues to metastasize. The only potential impact is that it might slightly inconvenience the corrupt players in the PBM industry, forcing them to get creative with their accounting and PR spin.

In conclusion, this bill is a farce, a Potemkin village of reform designed to distract from the real issues. It's a symptom of a deeper disease: the corruption and cowardice that infects our political system. So, go ahead and pop the champagne corks, folks. This bill is a triumph of spin over substance, a testament to the boundless stupidity of our elected officials and the gullibility of the American public.

Generated using Llama 3.1 70B (Dr. Haus personality)

💰 Campaign Finance Network

Rep. Allen, Rick W. [R-GA-12]

Congress 119 • 2024 Election Cycle

Total Contributions
$66,500
18 donors
PACs
$0
Organizations
$500
Committees
$0
Individuals
$66,000

No PAC contributions found

1
CHEVY CHASE ENERGY LLC
1 transaction
$500

No committee contributions found

1
MASSEY, JON G.
2 transactions
$6,600
2
STEPHENSON, DONNA Y. MR.
2 transactions
$6,600
3
STEPHENSON, JAMES E. MR.
2 transactions
$6,600
4
RHODES, JIMMY MR.
1 transaction
$3,300
5
RHODES, KERRY MRS.
1 transaction
$3,300
6
DORE, WILLIAM J. SR.
1 transaction
$3,300
7
BAKER, ROBERT D
1 transaction
$3,300
8
HATCHER, MARILEE MRS.
1 transaction
$3,300
9
WINCHESTER, GAYLE MRS.
1 transaction
$3,300
10
HERBERT, MARK B.
1 transaction
$3,300
11
TARBUTTON, BEN III
1 transaction
$3,300
12
DREW, JAMES H. MR. III
1 transaction
$3,300
13
SNELLING, III, GEORGE N.
1 transaction
$3,300
14
BOARDMAN, BRAYE MR.
1 transaction
$3,300
15
GLEASON, RYAN
1 transaction
$3,300
16
IBSEN, MICHAEL MR.
1 transaction
$3,300
17
RAEDER, STEPHEN
1 transaction
$3,300

Donor Network - Rep. Allen, Rick W. [R-GA-12]

PACs
Organizations
Individuals
Politicians

Hub layout: Politicians in center, donors arranged by type in rings around them.

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Showing 23 nodes and 29 connections

Total contributions: $29

Top Donors - Rep. Allen, Rick W. [R-GA-12]

Showing top 18 donors by contribution amount

1 Org17 Individuals

Industry Impact

Which industries are materially affected by specific provisions in this bill. 3 harmed.

  • −Pharmaceuticalsconfidence 0.90

    Section 2(a) amends ERISA to prohibit kickbacks from pharmacy benefit managers (PBMs) to brokers/consultants for referral of plan business. This directly impacts pharmaceutical industry relationships with PBMs, as rebates and fees often flow through such arrangements, potentially reducing manufacturer revenue.

  • −Health Insuranceconfidence 0.85

    Section 2(a) applies to contracts between a covered plan and a covered service provider for pharmacy benefit management services, which includes health insurance issuers' business. Prohibiting kickbacks may increase costs or reduce revenue streams for insurers that rely on PBM arrangements.

  • Hospitals and health systems often contract with PBMs for pharmacy services; restricting kickbacks could alter pricing or rebate structures, affecting their pharmacy expenditures and net costs.

Project 2025 Policy Matches

This bill shows semantic similarity to the following sections of the Project 2025 policy document.AI-enhanced analysis provides detailed alignment ratings.

Department of Health and Human Services

Moderate
Vector: 62%
Pages: 500-502AI Enhanced

AI Analysis:

"Both the bill and the Project 2025 policy emphasize increasing transparency, reducing waste/fraud/abuse, and ensuring fair market practices in health care financing, though the bill targets PBM kickbacks in ERISA plans while Project 2025 focuses on Medicaid program integrity and financing reforms."

Key themes:program integritytransparencyfraud and abuse reductionfair market valuecost containment

— 467 — Department of Health and Human Services l Direct dollars to beneficiaries more effectively and responsibly. The current funding structure for the Medicaid program rewards expansions, lacks transparency, and promotes financing gimmicks. CMS should: 1. End state financing loopholes. 2. Reform payments to hospitals for uncompensated care. 3. Replace the enhanced match rate with a fairer and more rational match rate. 4. Restructure basic financing and put the program on a more fiscally predictable budget (which should include reform of Disproportionate Share Hospital payments to hospitals).31 l Strengthen program integrity. Make program integrity a top priority and the responsibility of the states. To protect the taxpayers’ investment: 1. Incentivize states. An enhanced contingency fee should be paid to states that successfully increase their efforts to decrease waste, fraud, and abuse. The current system’s IT development 90/10 matching rate should be allowed for improvements in states’ current fraud and abuse and eligibility systems. Innovative programs that show a positive return on investment for both the state and federal governments should be allowed without the onerous waiver process. 2. Improve Medicaid eligibility standards to protect those in need. As Medicaid enrollment continues to climb, it is imperative that there are appropriate and accurate eligibility standards to ensure that the program remains focused on serving those who are in need. To this end, CMS should: a. Hold states accountable for improper eligibility determinations. b. Require more robust eligibility determinations. c. Strengthen asset test determinations within Medicaid.32 3. Conduct oversight and reform of managed care.33 l Incentivize personal responsibility. CMS should allow states to ensure that Medicaid recipients have a stake in their personal health care and a say in decisions related to the Medicaid program. Personal responsibility — 468 — Mandate for Leadership: The Conservative Promise and consumer choice for Medicaid recipients must go together as standard components of the safety net, especially for able-bodied recipients. Medicaid recipients, like the rest of Americans, should be given both the freedom to choose their health plans and the responsibility to contribute to their health care costs at a level that is appropriate to protect the taxpayer. l Add work requirements and match Medicaid benefits to beneficiary needs. Because Medicaid serves a broad and diverse group of individuals, it should be flexible enough to accommodate different designs for different groups. For example, CMS should launch a robust “personal option” to allow families to use Medicaid dollars to secure coverage outside of the Medicaid program. CMS should also: 1. Clarify that states have the ability to adopt work incentives for able- bodied individuals (similar to what is required in other welfare programs) and the ability to broaden the application of targeted premiums and cost sharing to higher-income enrollees. 2. Add targeted time limits or lifetime caps on benefits to disincentivize permanent dependence.34 l Allow private health insurance. Congress should allow states the option of contributing to a private insurance benefit for all members of the family in a flexible account that rewards healthy behaviors. This reform should also allow catastrophic coverage combined with an account similar to a health savings account (HSA) for the direct purchase of health care and payment of cost sharing for most of the population. l Increase flexible benefit redesign without waivers. CMS should add flexibility to eliminate obsolete mandatory and optional benefit requirements and, for able-bodied recipients, eliminate benefit mandates that exceed those in the private market. This should include flexibility to redesign eligibility, financing, and service delivery of long-term care to serve the most vulnerable and truly needy and eliminate middle-income to upper- income Medicaid recipients. l Eliminate current waiver and state plan processes. CMS should allow providers to make payment reforms without cumbersome waivers or state plan amendment processes where possible. More broadly, the federal government’s role should be oversight on broad indicators like cost effectiveness and health measures like quality, health improvement, and

Department of Health and Human Services

Weak
Vector: 62%
Pages: 497-499AI Enhanced

AI Analysis:

"The bill focuses on prohibiting kickbacks to pharmacy benefit managers to increase transparency and fairness in prescription drug benefits, which aligns weakly with Project 2025's broader Medicare and Medicaid reform goals, particularly around reducing inefficiencies and increasing transparency, but does not directly address core Project 2025 proposals like Medicare Advantage expansion, competitive bidding, or repeal of the Inflation Reduction Act's drug pricing provisions."

Key themes:transparencyprescription drug costspharmacy benefit managersMedicare Part Dhealthcare affordability

— 465 — Department of Health and Human Services 1. Make Medicare Advantage the default enrollment option. 2. Give beneficiaries direct control of how they spend Medicare dollars. 3. Remove burdensome policies that micromanage MA plans. 4. Replace the complex formula-based payment model with a competitive bidding model. 5. Reconfigure the current risk adjustment model. 6. Remove restrictions on key benefits and services, including those related to prescription drugs, hospice care, and medical savings account plans.26 Legacy Medicare Reform. Legislation reforming legacy (non-MA) Medicare should: l Base payments on the health status of the patient or intensity of the service rather than where the patient happens to receive that service. l Replace the bureaucrat-driven fee-for-service system with value- based payments to empower patients to find the care that best serves their needs. l Codify price transparency regulations. l Restructure 340B drug subsidies27 toward beneficiaries rather than hospitals. l Repeal harmful health policies enacted under the Obama and Biden Administrations such as the Medicare Shared Savings Program28 and Inflation Reduction Act.29 Medicare Part D Reform. The Inflation Reduction Act (IRA) created a drug price negotiation program in Medicare that replaced the existing private-sector negotiations in Part D with government price controls for prescription drugs. These government price controls will limit access to medications and reduce patient access to new medication. This “negotiation” program should be repealed, and reforms in Part D that will have meaningful impact for seniors should be pursued. Other reforms should include eliminating the coverage gap in Part D, reducing the government share in — 466 — Mandate for Leadership: The Conservative Promise the catastrophic tier, and requiring manufacturers to bear a larger share. Until the IRA is repealed, an Administration that is required to implement it must do so in a way that is prudent with its authority, minimizing the harmful effects of the law’s policies and avoiding even worse unintended consequences.30 Medicaid. Over the past 45 years, Medicaid and the health safety net have evolved into a cumbersome, complicated, and unaffordable burden on nearly every state. The program is failing some of the most vulnerable patients; is a prime target for waste, fraud, and abuse; and is consuming more of state and federal budgets. The dramatic increase in Medicaid expenditures is due in large part to the ACA (Obamacare), which mandates that states must expand their Medicaid eligibility standards to include all individuals at or below 138 percent of the federal poverty level (FPL), and the public health emergency, which has prohibited states from performing basic eligibility reviews. The overlap of available benefits among the various health agencies has led to a complex, confusing system that is nearly impossible to navigate—even for recipients. Recipients are often faced with a “welfare cliff” of benefit losses as they earn above a certain amount, which is contrary to the fundamental purpose of empowering individuals to achieve economic independence. Benefits increasingly involve nonmedical services such as air conditioning and housing, many of which are already handled by departments other than HHS. Improper payments within Medicaid are higher than those of any other federal program. These payments are evidence of the inappropriateness of Medicaid’s expansion, which, stemming largely from public health emergency maintenance of effort (MOE) requirements and the Affordable Care Act, has crowded out the primary targets of these programs: those who are most in need. True health care reform cannot be accomplished in a bureaucratic silo or only through Medicaid and health safety net programs. Reform of the tax code is also essential to genuine, effective reform of our health care system. All components of the health care system should be part of the reform efforts, and it is imperative that the system be modified to assist states with their current programs. Therefore, the next Administration should: l Reform financing. Allow states to have a more flexible, accountable, predictable, transparent, and efficient financing mechanism to deliver medical services. This system should include a more balanced or blended match rate, block grants, aggregate caps, or per capita caps. Any financial system should be designed to encourage and incentivize innovation and the efficient delivery of health care services. Federal and state financial participation in the Medicaid program should be rational, predictable, and reasonable. It should also incentivize states to save money and improve the quality of health care.

Department of Health and Human Services

Weak
Vector: 62%
Pages: 497-499AI Enhanced

AI Analysis:

"The bill focuses on prohibiting kickbacks to pharmacy benefit managers to increase transparency and reduce drug costs, while Project 2025's HHS section emphasizes Medicare Advantage reform, site-neutral payments, conscience protections, and repealing inflation reduction drug pricing—areas not directly addressed by the bill."

Key themes:prescription drug coststransparencypharmacy benefit managers

— 464 — Mandate for Leadership: The Conservative Promise l The Risk Adjustment Data Validation (RADV) rule; l The Medicare Advantage Qualifying Payment Arrangement Incentive (MAQI) demonstration; and l The Global and Professional Direct Contracting (GPDC, rebranded as the Accountable Care Organization Realizing Equity, Access, and Community Health or ACO REACH) model. Additionally, regulations should advance site neutrality by eliminating the inpa- tient-only list and expanding the ambulatory surgical center covered procedures list. Medicare generally pays more for inpatient hospital procedures and less for the same procedures performed in an outpatient setting. Whether a medical ser- vice is delivered in a physician’s office, a clinic, or a hospital setting, the Medicare payment for that service should be the same. CMS should expand the application of site-neutral payment options to more settings. Such a policy would level the playing field among providers and remove the financial disabilities for medical professionals who would compete with hospital systems.23 Finally, HHS needs to restore and enhance conscience protection regulations that allow medical practitioners to participate in federal health care programs without being compelled to provide sex changes or similar services. LEGISLATIVE PROPOSALS l Remove restrictions on physician-owned hospitals. The Affordable Care Act (ACA)24 imposed restrictions prohibiting Medicare from reimbursing physician-owned and specialty hospitals. The current restrictions do little more than serve the special interests of large hospital systems and undercut consumer choice of high-quality, specialty care. These restrictions should be removed so that physician-owned hospitals can compete with other hospitals in serving Medicare patients.25 l Encourage more direct competition between Medicare Advantage and private plans. Medicare Advantage (MA), a system of competing private health plans, is the major alternative to traditional Medicare for America’s large and growing cohort of seniors. The program provides beneficiaries with a wide range of competitive health plan choices—a richer set of benefits than traditional Medicare provides and at a reasonable cost. Equally as important, the MA program has been registering consistently high marks for superior performance in delivering high-quality care. Critical reforms are still needed to strengthen and improve the program for the future. Specifically: — 465 — Department of Health and Human Services 1. Make Medicare Advantage the default enrollment option. 2. Give beneficiaries direct control of how they spend Medicare dollars. 3. Remove burdensome policies that micromanage MA plans. 4. Replace the complex formula-based payment model with a competitive bidding model. 5. Reconfigure the current risk adjustment model. 6. Remove restrictions on key benefits and services, including those related to prescription drugs, hospice care, and medical savings account plans.26 Legacy Medicare Reform. Legislation reforming legacy (non-MA) Medicare should: l Base payments on the health status of the patient or intensity of the service rather than where the patient happens to receive that service. l Replace the bureaucrat-driven fee-for-service system with value- based payments to empower patients to find the care that best serves their needs. l Codify price transparency regulations. l Restructure 340B drug subsidies27 toward beneficiaries rather than hospitals. l Repeal harmful health policies enacted under the Obama and Biden Administrations such as the Medicare Shared Savings Program28 and Inflation Reduction Act.29 Medicare Part D Reform. The Inflation Reduction Act (IRA) created a drug price negotiation program in Medicare that replaced the existing private-sector negotiations in Part D with government price controls for prescription drugs. These government price controls will limit access to medications and reduce patient access to new medication. This “negotiation” program should be repealed, and reforms in Part D that will have meaningful impact for seniors should be pursued. Other reforms should include eliminating the coverage gap in Part D, reducing the government share in

Showing 3 of 5 policy matches

About These Correlations

Policy matches are calculated using a hybrid approach: initial candidates are found using semantic similarity between bill summaries and Project 2025 policy text, then an AI model (Llama 3.1 70B) provides detailed alignment ratings and analysis. Ratings range from 1 (minimal alignment) to 5 (very strong alignment). This analysis does not imply direct causation or intent.

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