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119-hr-8779119th CongressWALLET

PBM Act

Sponsored By: Representative Harshbarger, Diana [R-TN-1]

Introduced

Summary

Bans insurers and pharmacy benefit managers (PBMs) from owning pharmacies. The Patients Before Monopolies Act would require insurers or PBMs that own pharmacies to divest those holdings within one year and sets penalties and legal tools to enforce that split.

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  • Consumers and patients gain new ways to recover money. The bill creates private lawsuits with damages and fees, and directs disgorged revenue into an FTC fund to help communities and consumers overcharged at vertically integrated pharmacies.
  • Pharmacy owners face an orderly divestment process with milestones, possible appointment of a divestiture trustee, and a penalty that places ten percent of the violator's profits into escrow each month if milestones slip.
  • Federal and state enforcers get broad powers. The FTC and the Department of Justice Antitrust Division can seek injunctions, compel divestiture, and review post-sale effects, while state attorneys general and the HHS Inspector General may bring civil actions, including parens patriae suits for monetary relief.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

New private lawsuits for consumers

If enacted, people who say they were harmed by a violation would be able to sue in state or federal court. A winning plaintiff could recover three times their damages, reasonable lawyer fees and costs, and other relief. A State attorney general could also file a parens patriae suit on behalf of residents to get monetary and other relief.

Ban on insurer or PBM pharmacy ownership

If enacted, the bill would make it unlawful for a person to both own or control a pharmacy and also own or control an insurance company or a pharmacy benefit manager. Anyone found in violation would have to divest the pharmacy within one year of enactment. The bill would define key terms like "pharmacy," "health plan," and "pharmacy benefit manager" so the rule covers many kinds of pharmacies and PBM activities. The FTC and Justice Department would issue milestones to guide the one-year sale process within 30 days of enactment.

Penalties and enforcement for violations

If enacted, agencies could enforce the ban in multiple ways. Firms that miss divestment milestones could have 10 percent of their monthly profits put into escrow each month; that money would be returned if they complete the sale by the one-year deadline and sent to a designated fund if they do not. If a sale still does not occur, a divestiture trustee could be appointed to sell the pharmacy. The FTC and Justice Department could review required sales, block deals that harm competition, and government enforcers or state attorneys general could sue to stop violations.

Agency rules, reports, and oversight

If enacted, the Federal Trade Commission could write rules to implement the ban, but those rules could not weaken the statute. The FTC Chair and the Justice Department antitrust chief would have to send quarterly reports to the appropriate congressional committees about compliance and the status of any required divestitures. These steps would increase oversight and transparency of how the law is enforced.

Sponsors & CoSponsors

Sponsor

Harshbarger, Diana [R-TN-1]

TN • R

Cosponsors

  • Rep. Auchincloss, Jake [D-MA-4]

    MA • D

    Sponsored 5/13/2026

  • Rep. Carter, Earl L. "Buddy" [R-GA-1]

    GA • R

    Sponsored 5/13/2026

  • Rep. Landsman, Greg [D-OH-1]

    OH • D

    Sponsored 5/13/2026

  • Rep. Nehls, Troy E. [R-TX-22]

    TX • R

    Sponsored 5/13/2026

  • Rep. Nadler, Jerrold [D-NY-12]

    NY • D

    Sponsored 5/13/2026

  • Rep. McCormick, Richard [R-GA-7]

    GA • R

    Sponsored 5/14/2026

  • Rep. Deluzio, Christopher R. [D-PA-17]

    PA • D

    Sponsored 5/21/2026

  • Rep. Goodlander, Maggie [D-NH-2]

    NH • D

    Sponsored 7/22/2026

Roll Call Votes

No roll call votes available for this bill.

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