PBM Kickback Prohibition Act

This bill prohibits pharmacy benefit management companies from paying referral fees to brokers, consultants, or other individuals in exchange for directing business to them. It directly affects pharmacy benefit management service providers, brokerage firms, and healthcare plans by amending the Employee Retirement Income Security Act to ban such compensation arrangements. The key provision adds a new restriction to existing laws, making it illegal for these service providers to pay any amount, directly or indirectly, for referrals of their services. The ban takes effect for plan years starting after the bill is enacted, aiming to increase transparency in healthcare service contracting.