U.S. Capitol building in Washington. Photo: Diego M. Radzinschi/ALM

House leaders have put 97 pages of requirements for employers' pharmacy benefit managers in a critical new legislative package.

Members of Congress drafted the 1,547-page "Further Continuing Appropriations and Disaster Relief Supplemental Appropriations Act, 2025" to keep the federal government from shutting down.

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One section would require a PBM serving a large fully insured or large self-insured employer health plan to pass 100% of any prescription drug rebates or other discounts on to an employer plan's sponsor.

Another provision would set detailed PBM reporting rules for employer plans.

The American Pharmacists Association loves the PBM provisions.

PBMs' strategies "robbed many communities of the necessary health care services they have come to rely upon," said Michael Hogue, chief executive officer of the American Pharmacists Association. "We thank our congressional champions who understand there is more work to be done."

The PBMs' group, the Pharmaceutical Care Management Association, says the provisions will increase costs for employers and patients and put more cash in the pockets of "Big Pharma."

"Employers will be dealt an unprecedented government intrusion into their commercial market contracting," the PBMs' association said. "No longer will they have the final say on their contracts with pharmacy benefit managers."

The package: Congress created the Further Continuing Appropriations package to get many bills passed before the end of the year. The package includes authorization for the government to keep running into March 14, 2025. It also provides about $100 billion in aid for the communities hit by Hurricane Helene and Hurricane Milton.

A section for Medicare Part D prescription drug plan PBMs would limit Medicare plan PBMs to collecting service fees. It would prohibit PBMs from tying any of their compensation to the size of the discounts they negotiated.

Related: Senate bill could ban spread pricing, and cost PBMs $7B per year: Budget analysts


The PBM fight: Lawmakers drafted the employer plan PBM provision in response to complaints that big PBMs like Cigna's Express Scripts, CVS Health's Caremark and UnitedHealth's Optum Rx keep most of the discounts they negotiate.

The PBMs themselves have argued, on their own and through the Pharmaceutical Care Management Association that the critics are angry at them because they have succeeded at holding prescription prices down and squeezing others' players' profits.

Employer plan PBM provision provisions: The employer plan PBM provisions in the new package would define a "large employer" as an employer with 100 or more health plan participants.

The reporting requirements would make a PBM send the employer a report that included detailed information about wholesale prices, discounts and patient out-of-pocket costs for each drug a plan covered.

The participants would get a summary report.

The rebate provision and the reporting requirements would take effect 30 months after the spending package was enacted.

A health insurer, PBM or benefit plan administration that knowingly provided incorrect report information could face a fine of up to $100,000 for each item of false information.

The employer plan PBM section would not require health insurers to sell their PBMs or insurers or PBMs to sell their pharmacies.

The twist: A few hours after the original publication time for this article, President-elect Donald Trump objected to the spending package and may have stopped it from moving forward.

Whether Congress will find a way to prevent a partial government shutdown is unclear, and the ultimate effect of the new negotiations on what will or won't get through Congress is also unclear. But, in part because of their broad, bipartisan support, the PBM provisions still have a chance to become law, whether as part of the current spending package, a new package or as stand-alone bills.

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Allison Bell

Allison Bell, a senior reporter at ThinkAdvisor and BenefitsPRO, previously was an associate editor at National Underwriter Life & Health. She has a bachelor's degree in economics from Washington University in St. Louis and a master's degree in journalism from the Medill School of Journalism at Northwestern University. She can be reached through X at @Think_Allison.