S.Amdt. 3384

This amendment aims to stop unfair, deceptive, and false practices by pharmacy benefit managers (PBMs) regarding prescription drug services. It adds a new section to the bill to hold PBMs and their affiliates accountable for how they handle drug pricing and information.

Key Changes and Additions:

• Prohibiting Unfair Pricing: It makes it illegal for PBMs to keep the difference between what they charge a payer and what they pay a pharmacy. It also bans the arbitrary "claw back" of pharmacy payments and the unfair lowering of pharmacy reimbursements to offset government-directed changes.

• Stopping False Information: It prohibits people from reporting false or misleading information about PBM services to Federal agencies if that information would affect market analysis.

• Increasing Transparency: PBMs must provide annual reports to the Federal Trade Commission (FTC) and the Secretary of Health and Human Services. These reports must detail payment differences, fees charged to pharmacies, and reasons for moving drugs to higher-cost formulary tiers.

• Government Oversight: The amendment requires the FTC and the Comptroller General of the United States (GAO) to submit reports to Congress on PBM competition, market share, and the impact of PBM practices on consumer costs.

• Protecting Whistleblowers: It prohibits PBMs, health plans, and manufacturers from retaliating against employees or contractors who report violations. It provides these individuals the right to a jury trial for reinstatement and damages.

• Enforcement and Penalties: The FTC is given power to enforce these rules, including the ability to impose civil penalties up to $1,000,000. State attorneys general are also authorized to bring civil actions to protect their residents.