DRUG Act

S 1542, the DRUG Act, prohibits pharmacy benefit managers (PBMs) from charging fees tied to drug prices or rebates for services provided to health plans or insurers, effective January 1, 2026. Instead, PBMs may only charge a fixed "flat service fee" agreed upon in writing, not linked to drug costs or patient usage. The bill also bans PBMs from reimbursing affiliated pharmacies more than independent ones, charging health plans different amounts than they pay pharmacies, or steering patients to affiliated pharmacies through higher out-of-pocket costs. Violations trigger $10,000 daily civil penalties enforced by the HHS Secretary with Labor and Treasury. This directly affects PBMs, health insurers, employer health plans, and pharmacies, aiming to reduce cost-shifting and promote fair reimbursement practices.