Ending the Prescription Drug Kickback Act of 2023

This bill prohibits drug manufacturers from providing rebates or other payments to health plans or pharmacy benefit managers (PBMs) that could influence which drugs appear on preferred formulary tiers. It directly affects Medicare Part D plans, private health insurers, and PBMs by banning these financial arrangements for covered prescription drugs. The law defines "rebate" as a fixed discount disclosed at purchase but paid later, and removes previous safe harbor protections for such payments. The changes take effect January 1, 2025.