A bill to amend title XXVII of the Public Health Service Act to establish requirements with respect to prescription drug benefits.

II 116TH CONGRESS 1ST SESSION S. 657 To amend title XXVII of the Public Health Service Act to establish requirements with respect to prescription drug benefits. IN THE SENATE OF THE UNITED STATES MARCH 5, 2019 Mr. BRAUN introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend title XXVII of the Public Health Service Act to establish requirements with respect to prescription drug benefits. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. REQUIREMENTS WITH RESPECT TO PRESCRIP- 3 TION DRUG BENEFITS. 4 (a) IN GENERAL.—Subpart II of part A of title 5 XXVII of the Public Health Service Act (42 U.S.C. 6 300gg–11 et seq.) is amended by adding at the end the 7 following: 8 VerDate Sep 11 2014 21:52 Mar 13, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S657.IS S657 pamtmann on DSKBFK8HB2PROD with BILLS 2 •S 657 IS ‘‘SEC. 2729A. REQUIREMENTS WITH RESPECT TO PRESCRIP- 1 TION DRUG BENEFITS. 2 ‘‘A group health plan or a health insurance issuer of- 3 fering group or individual health insurance coverage shall 4 not, and shall ensure that any entity that provides phar- 5 macy benefits management services under a contract with 6 any such health plan or health insurance coverage does 7 not, receive from a drug manufacturer a reduction in price 8 or other remuneration with respect to any prescription 9 drug received by an enrollee in the plan or coverage and 10 covered by the plan or coverage, unless— 11 ‘‘(1) any such reduction in price is reflected at 12 the point of sale to the enrollee; and 13 ‘‘(2) any such other remuneration is a flat fee- 14 based service fee that a manufacturer of prescription 15 drugs pays to a pharmacy benefit manager for serv- 16 ices rendered to the manufacturer that relate to ar- 17 rangements by the pharmacy benefit manager to 18 provide pharmacy benefit management services to a 19 health plan or health insurance issuer, if certain 20 conditions established by the Secretary are met, in- 21 cluding requirements that the fees are transparent 22 to the health plan or health insurance issuer.’’. 23 VerDate Sep 11 2014 21:52 Mar 13, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S657.IS S657 pamtmann on DSKBFK8HB2PROD with BILLS 3 •S 657 IS (b) EFFECTIVE DATE.—Section 2729A of the Public 1 Health Service Act, as added by subsection (a), shall take 2 effect on January 1, 2020. 3 Æ VerDate Sep 11 2014 21:52 Mar 13, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S657.IS S657 pamtmann on DSKBFK8HB2PROD with BILLS