Section 1. Short title
This Act may be cited as the PBM Kickback Prohibition Act.
(a) In general
Section 408(b)(2)(B) of the Employee Retirement Income Security Act (29 U.S.C. 1108(b)(2)(B)) is amended by adding at the end the following:
(x) In the case of a contract or arrangement between a covered plan and a covered service provider for pharmacy benefit management services, no amount of compensation may be paid, directly or indirectly, by such service provider to a brokerage firm, broker, consultant, advisor, or any other individual for the referral of the covered plan’s or health insurance issuer's business to the covered service provider.
(b) Effective date
The amendment made by this section shall apply for plan years beginning after the date of enactment of this Act.