I 

118TH CONGRESS 

2D SESSION H. R. 7535 

To require the Comptroller General of the United States to conduct a study 

and submit a report on price-related compensation and payment structures in the prescription drug supply chain. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 5, 2024 

Ms. CARAVEO (for herself and Mr. MANN) introduced the following bill; which 

was referred to the Committee on Energy and Commerce, and in addition 

to the Committee on Ways and Means, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To require the Comptroller General of the United States 

to conduct a study and submit a report on price-related 

compensation and payment structures in the prescription 

drug supply chain. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Prescription Drug 

5 Supply Chain Pricing Transparency Act’’. 


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1 SEC. 2. GAO STUDY AND REPORT ON PRICE-RELATED COM2 PENSATION AND PAYMENT STRUCTURES IN 

3 THE PRESCRIPTION DRUG SUPPLY CHAIN. 

4 Section 1860D–42 of the Social Security Act (42 

5 U.S.C. 1395w–152) is amended by adding at the end the 

6 following new subsection: 

7 ‘‘(e) GAO STUDY AND REPORT ON PRICE-RELATED

8 COMPENSATION AND PAYMENT STRUCTURES IN THE

9 PRESCRIPTION DRUG SUPPLY CHAIN.— 

10 ‘‘(1) STUDY.—The Comptroller General of the 

11 United States (in this subsection referred to as the 

12 ‘Comptroller General’) shall conduct a study on the 

13 use of compensation and payment structures related 

14 to a prescription drug’s price within the retail pre15 scription drug supply chain. Such study shall include 

16 an overview of the following: 

17 ‘‘(A) The type, magnitude, other features 

18 (such as the pricing benchmarks used), and 

19 prevalence of compensation and payment struc20 tures related to a prescription drug’s price, 

21 such as calculating fee amounts as a percentage 

22 of a prescription drug’s price, between inter23 mediaries in the prescription drug supply chain, 

24 including— 

25 ‘‘(i) pharmacy benefit managers; 

26 ‘‘(ii) part D plan sponsors; 


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•HR 7535 IH

1 ‘‘(iii) drug wholesalers; 

2 ‘‘(iv) pharmacies; 

3 ‘‘(v) manufacturers; 

4 ‘‘(vi) pharmacy services administrative 

5 organizations; 

6 ‘‘(vii) brokers, auditors, consultants, 

7 and other entities that advise part D plan 

8 sponsors about pharmacy benefits or re9 view part D plan sponsor contracts with 

10 pharmacy benefit managers; and 

11 ‘‘(viii) other service providers that 

12 contract with any of the entities described 

13 in clauses (i) through (vii), including re14 bate aggregators (or other entities that ne15 gotiate or process price concessions on be16 half of pharmacy benefit managers or plan 

17 sponsors). 

18 ‘‘(B) The primary business models and 

19 compensation structures for each category of 

20 intermediary described in subparagraph (A). 

21 ‘‘(C) Variation in price-related compensa22 tion structures between affiliated entities (such 

23 as entities with common ownership, either full 

24 or partial, and subsidiary relationships) and un25 affiliated entities. 


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•HR 7535 IH

1 ‘‘(D) Potential conflicts of interest among 

2 contracting entities related to the use of pre3 scription drug price-related compensation struc4 tures, such as the potential for fees or other 

5 payments set as a percentage of a prescription 

6 drug’s price to advantage the formulary selec7 tion, distribution, or purchasing of prescription 

8 drugs with higher prices. 

9 ‘‘(E) Patterns and trends in price-based 

10 compensation structures over time and between 

11 different market segments, such as under this 

12 part and the Medicaid program under title 

13 XIX. 

14 ‘‘(F) The factors driving the consideration 

15 and use of price-related compensation struc16 tures in the prescription drug supply chain. 

17 ‘‘(G) Other issues determined to be rel18 evant and appropriate by the Comptroller Gen19 eral. 

20 ‘‘(2) REPORT.—Not later than 2 years after the 

21 date of enactment of this subsection, the Comp22 troller General shall submit to Congress a report 

23 containing the results of the study conducted under 

24 paragraph (1), together with recommendations for 


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1 such legislation and administrative action as the 

2 Comptroller General determines appropriate.’’. 

Æ 


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