PBM Reporting Transparency Act

The PBM Reporting Transparency Act requires the Medicare Payment Advisory Commission (MedPAC) to produce two reports analyzing pharmacy benefit manager (PBM) agreements with Medicare prescription drug plans. The first report, due 2 years after data becomes available, must detail trends in PBM contracts, their impact on beneficiaries' out-of-pocket costs and pharmacy reimbursement rates, and include recommendations. A second report, due 2 years after the first, will track changes in this data over time and provide updated recommendations. This legislation directly affects Medicare drug plan participants by increasing transparency around PBM practices that influence prescription drug costs.