I 

116TH CONGRESS 

1ST SESSION H. R. 2376 

To require the Federal Trade Commission to study the role of intermediaries 

in the pharmaceutical supply chain and provide Congress with appropriate policy recommendations, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 29, 2019 

Mr. COLLINS of Georgia (for himself and Mr. NADLER) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, 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 Federal Trade Commission to study the role 

of intermediaries in the pharmaceutical supply chain and 

provide Congress with appropriate policy recommendations, and for other purposes. 

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 Pricing 

5 for the People Act of 2019’’. 


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1 SEC. 2. DEFINITIONS. 

2 In this Act: 

3 (1) APPROPRIATE COMMITTEES OF CON4 GRESS.—The term ‘‘appropriate committees of Con5 gress’’ means— 

6 (A) the Committee on the Judiciary of the 

7 Senate; and 

8 (B) the Committee on the Judiciary of the 

9 House of Representatives. 

10 (2) COMMISSION.—The term ‘‘Commission’’ 

11 means the Federal Trade Commission. 

12 SEC. 3. STUDY OF PHARMACEUTICAL SUPPLY CHAIN 

13 INTERMEDIARIES AND MERGER ACTIVITY. 

14 (a) INITIAL REPORT.—Not later than 1 year after 

15 the date of enactment of this Act, the Commission shall 

16 submit to the appropriate committees of Congress a report 

17 that— 

18 (1) addresses at minimum— 

19 (A) whether pharmacy benefit managers— 

20 (i) charge payers a higher price than 

21 the reimbursement rate at which the phar22 macy benefit managers reimburse com23 peting pharmacies; 

24 (ii) steer patients for anticompetitive 

25 purposes to any pharmacies, including re26 tail, mail-order, or any other type of pharVerDate Sep 11 2014 01:29 Apr 30, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2376.IH H2376

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1 macy, in which the PBM has an ownership 

2 interest; 

3 (iii) audit or review proprietary data, 

4 including acquisition costs, patient infor5 mation, or dispensing information, of com6 peting pharmacies that can be used for 

7 anticompetitive purposes; or 

8 (iv) use formulary designs to increase 

9 the market share of higher cost prescrip10 tion drugs and depress the market share of 

11 lower cost prescription drugs (each net of 

12 rebates and discounts); 

13 (B) whether there are any specific legal or 

14 regulatory obstacles the Commission currently 

15 faces in ensuring a competitive and transparent 

16 marketplace in the pharmaceutical supply 

17 chain, including the pharmacy benefit manager 

18 marketplace and pharmacy services administra19 tive organizations; 

20 (C) how companies and payers assess the 

21 benefits, costs, and risks of contracting with 

22 intermediaries, including pharmacy services ad23 ministrative organizations, and whether more 

24 information about the roles of intermediaries 


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1 should be available to consumers and payers; 

2 and 

3 (D) whether there are any specific legal or 

4 regulatory obstacles the Commission currently 

5 faces in ensuring a competitive and transparent 

6 marketplace in the pharmaceutical supply 

7 chain, including the pharmacy benefit manager 

8 marketplace and pharmacy services administra9 tive organizations; and 

10 (2) provides— 

11 (A) observations or conclusions drawn 

12 from the November 2017 roundtable entitled 

13 ‘‘Understanding Competition in Prescription 

14 Drug Markets: Entry and Supply Chain Dy15 namics’’, and any similar efforts; 

16 (B) specific actions the Commission in17 tends to take as a result of the November 2017 

18 roundtable, and any similar efforts, including a 

19 detailed description of relevant forthcoming ac20 tions, additional research or roundtable discus21 sions, consumer education efforts, or enforce22 ment actions; and 

23 (C) policy or legislative recommendations 

24 to— 


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1 (i) improve transparency and competi2 tion in the pharmaceutical supply chain; 

3 (ii) prevent and deter anticompetitive 

4 behavior in the pharmaceutical supply 

5 chain; and 

6 (iii) best ensure that consumers ben7 efit from any cost savings or efficiencies 

8 that may result from mergers and consoli9 dations. 

10 (b) INTERIM REPORT.—Not later than 180 days 

11 after the date of enactment of this Act, the Commission 

12 shall submit to the appropriate committees of Congress 

13 an interim report on the progress of the report required 

14 by subsection (a), along with preliminary findings and 

15 conclusions based on information collected to that date. 

Æ 


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