,,ib ,union ,calendar ,no4 #fcd #aaith  
,,congress  #b;d ,session  ,h4 ,r4 #ghie
 ,report ,no4 #aai-gbi ,,in ,,the       
,,house ,,of ,,representatives  ,march  
#ab1 #bjbf,mr4 ,allen introduced the    
following bill2 which was referred to   
the ,committee on ,education and        
,workforce  ,july #b1 #bjbf,reported    
with an amendment1 committed to the     
,committee of the ,whole ,house on the  
,state of the ,union1 and ordered to be 
printed,strike out all after the        
enacting clause and insert the part     
printed in italic,for text of introduced
 bill1 see copy of bill as introduced on
 ,march #ab1 #bjbf  ,a ,,bill  ,to amend
 section #djh of the ,employee          
,retirement ,income ,security ,act of   
#aigd to prohibit kickbacks to pharmacy 
benefit managers4  #a4 ,short title     
,this ,act may be cited as the ,,pbm    
,kickback ,prohibition ,act4  #b4       
,prohibition on pharmacy benefit manager
 kickbacks  7a7 ,in general ,section    
#djh7;b77#b77;,b7 of the ,employee      

,retirement ,income ,security ,act 7#bi 
,u4,s4,c4 #aajh7;b77#b77;,b77 is amended
 by adding at the end the following3    
7xi7 7,i7 ,in the case of a contract or 
arrangement between a covered plan and a
 covered service provider for pharmacy  
benefit management services1 no amount  
of compensation 7whether direct         
compensation or indirect compensation7  
may be paid by such service provider to 
any individual or entity for-- 7aa7 the 
referral1 recommendation1 placement1    
retention1 or renewal of1 or access to1 
the business of the covered plan or the 
health insurance issuer offering health 
insurance coverage for the covered plan2
  7bb7 inclusion in1 participation in1  
or the design of-- 7,,aa7 a request for 
proposal2 7,,bb7 a market check2 7,,cc7 
an evaluation2 7,,dd7 the volume1 value1
 or use of covered plan business2 or    
7,,ee7 any other contracting process4   
7,,ii7 ,for the purposes of this clause1
 the characterization of compensation   
shall be based on the economic substance

 and practical operation of the contract
 or arrangement1 without regard to the  
characterization or labeling of the     
compensation by the covered service     
provider4  7,,iii7 ,any compensation    
paid by a covered service provider to a 
brokerage firm1 broker1 consultant1     
advisor1 or related entity shall be     
presumed to be related to an activity   
described in item 7aa7 or 7bb7 of       
subclause 7,i7 unless the parties       
demonstrate through contemporaneous     
written documentation that such         
compensation-- 7aa7 reflects fair market
 value for bona fide services actually  
rendered2 and  7bb7 is not related1     
directly or indirectly1 to any activity 
described in such items4  4  7b7        
,effective date ,the amendment made by  
this section shall apply for plan years 
beginning after the date of enactment of
 this ,act4  ,july #b1 #bjbf,reported   
with an amendment1 committed to the     
,committee of the ,whole ,house on the  
,state of the ,union1 and ordered to be 

printed