Congress bans hidden kickbacks that inflate your pharmacy costs
H.R. 7895 — PBM Kickback Prohibition Act · Filed by Rick Allen (R-GA) · Introduced Mar 12, 2026 · Reported out
Your members of Congress
Enter a ZIP to see where your representative and both senators stood on this bill.
Looked up on this device — your ZIP is never stored on our servers.
What it does
This bill amends federal pension law (ERISA) to ban pharmacy benefit managers (PBMs) from paying kickbacks to brokers, consultants, or other intermediaries in exchange for steering business to them or influencing contract decisions. It closes loopholes by focusing on the economic substance of payments rather than their label, and presumes payments to intermediaries are kickbacks unless the parties prove otherwise with written documentation that the payment reflects fair market value for legitimate services.
Why we flagged it
The bill's operative mechanism is a direct prohibition on a specific form of compensation (kickbacks) paid by a named service provider (PBMs) to intermediaries. It is a narrow, targeted enforcement measure within existing ERISA fiduciary law, not a broad regulatory overhaul.
What the text implies
- Presumption that intermediary payments are kickbacks unless proven otherwise shifts burden of proof to PBMs and brokers, potentially reducing frivolous or borderline arrangements without explicit litigation.
- Focus on 'economic substance' over contractual labeling may catch arrangements structured to evade the prohibition by disguising kickbacks as consulting fees, market research, or other services.
The full analysis lists 4 implications of this text.
Who stands to gain
ERISA plan sponsors (employers, unions); Plan beneficiaries (workers, retirees); Pharmacy networks (reduced PBM leverage)