Bill · S. 3822· Senate(119-S-3822)
Break Up Big Medicine Act
- Introduced
- 2/10/2026
- Last activity
- 2/10/2026 — Read twice and referred to the Committee on the Judiciary.
- Sponsored by
- Elizabeth Warren
- Cosponsors
- - 0 - 1
- Introduced
- In Committee
What this bill would do
The "Break Up Big Medicine Act" aims to prevent vertical integration within the healthcare industry. It prohibits certain entities, such as insurance companies and pharmacy benefit managers, from being under common ownership with medical service providers. It also prohibits drug or medical device wholesalers from owning medical providers or management services organizations. Companies currently in violation must divest their controlled entities within one year. The bill provides federal and state authorities with the power to enforce these separations through civil actions.
Yes· 3 of 14
Does this lower the price of prescription medicines?+7
The bill targets pharmacy benefit managers and wholesalers to prevent steering and promote price competition for drugs.
Would households on low incomes be better off under this?+5
Lowering healthcare and drug costs provides significant financial relief to low-income households.
Does this make it easier to run a small business?+5
The bill helps independent physicians and smaller pharmacies by reducing the dominance of vertically integrated conglomerates.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Restoring Market Competition: By structurally separating vertically integrated health conglomerates, the bill intends to restore competition to the healthcare marketplace (Section 2, Paragraph 8, Subparagraph A).
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Reducing Prescription Drug Costs: The bill seeks to address instances where pharmacy benefit managers steer business to affiliated pharmacies, which currently reduces competition and increases costs for patients (Section 2, Paragraph 6, Subparagraph A).
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Ensuring Better Treatment Decisions: Separating wholesalers from providers aims to prevent the incentive for specialists to be steered toward prescribing the most lucrative drugs and devices rather than the best treatment for the patient (Section 2, Paragraph 6, Subparagraph E).
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Protecting Taxpayers and Enrollees: The bill targets the ability of large insurers to use employed physicians to generate inflated payments from the Federal Government without improving care quality (Section 2, Paragraph 6, Subparagraph D).
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Providing Financial Redress for Consumers: Revenue collected through disgorgement can be distributed to a fund used to serve the healthcare needs of harmed communities, including consumers who were overcharged (Section 3, Subsection C, Paragraph 7).
Potential Negative Impacts for People
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Mandatory Divestiture Burdens: Companies found in violation of the ownership prohibitions are required to divest their entire interest in either the provider or the insurance/wholesaler side of their business within one year (Section 3, Subsection A, Paragraphs 1 and 2).
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Financial Penalties for Non-compliance: Entities that fail to meet specified divestment milestones may have 10 percent of their profits transferred into an escrow account (Section 3, Subsection B, Paragraph 2, Subparagraph B).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+5Good For Middle Class Households+4Good For Seniors+4Good For People With Disabilities+3Good For Union Workers+1
- Healthcare
- Reduces Prescription Drug Costs+7Improves Healthcare Access+3Increases Affordable Care Act Support+1
- Economy And Finance
- Improves Small Business Support+5Improves Economic Growth+1Increases Job Creation+1
- Governance And Ideology
- Increases Federal Power+5Improves Government Transparency+2
- Social Issues And Justice
- Improves Poverty Reduction+2
- 2/10/2026
- Read twice and referred to the Committee on the Judiciary.
- 1 Cosponsor added.
- Introduced in Senate
Josh HawleyRepublican · Missouri