I 
119TH CONGRESS 
1ST SESSION H. R. 6837 
To amend the Employee Retirement Income Security Act of 1974 to ensure 
that pharmacy benefit managers are considered fiduciaries, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 18, 2025 
Mr. AUCHINCLOSS (for himself and Mr. MACKENZIE) introduced the following 
bill; which was referred to the Committee on Education and Workforce 
A BILL 
To amend the Employee Retirement Income Security Act 
of 1974 to ensure that pharmacy benefit managers are 
considered fiduciaries, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. ESTABLISHING FIDUCIARY DUTIES OF PHAR-
MACY BENEFIT MANAGERS. 
(a) DEEMING PHARMACY BENEFIT MANAGERS AS 
ERISA FIDUCIARIES.—Section 3(21) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1002(21)) is amended by adding at the end the following: 
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‘‘(C) A person or entity shall be deemed to be a fidu-
ciary with respect to a group health plan for the purposes 
of this Act if the person or entity— 
‘‘(i) maintains for the group health plan, the 
plan sponsor or plan administrator of such plan, or 
a health insurance issuer offering group health in-
surance coverage a prescription drug provider net-
work or prescription drug formulary through the 
purchase of prescription drugs from a drug manu-
facturer, distributor, wholesaler, rebate aggregator, 
group purchasing organization, or any associated 
third party; or 
‘‘(ii) engages in, on behalf of, or in connection 
with, the group health plan, the plan sponsor or plan 
administrator of such plan, or a health insurance 
issuer offering group health insurance coverage— 
‘‘(I) the negotiation or aggregation of re-
bates, fees, discounts, or other price concessions 
for prescription drugs; 
‘‘(II) the processing and payment of claims 
for prescription drugs; or 
‘‘(III) the performance of utilization review 
and management for prescription drugs on be-
half of a group health plan.’’. 
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(b) REQUIRED COMPENSATION DISCLOSURES FROM 
PHARMACY BENEFIT MANAGERS AND THIRD PARTY AD-
MINISTRATORS.—Section 408(b)(2)(B)(ii)(I)(bb) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1108(b)(2)(B)(ii)(I)(bb)) is amended by adding at 
the end the following: 
‘‘(CC) Pharmacy benefit management 
services provided to a covered plan, for 
which the covered service provider, an affil-
iate, or a subcontractor reasonably expects 
to receive indirect compensation or direct 
compensation described in item (dd), in-
cluding the establishment and maintenance 
of a prescription drug provider network or 
prescription drug formulary or through the 
purchase of prescription drugs from a drug 
manufacturer, distributor, wholesaler, re-
bate aggregator, group purchasing organi-
zation, or any associated third party for 
the covered plan. 
‘‘(DD) Third party administrative 
services provided to a covered plan, for 
which the covered service provider, an affil-
iate, or a subcontractor reasonably expects 
to receive indirect compensation or direct 
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compensation described in item (dd), in-
cluding establishing and maintaining a net-
work of medical providers, adjudicating or 
processing 
health 
claims, 
maintaining 
records, and negotiating reimbursement 
rates for the covered plan.’’. 
(c) CLARIFICATION OF RESPONSIBLE PLAN FIDU-
CIARY.—Section 408(b)(2)(B)(ii)(I)(ee) of the Employee 
Retirement Income Security Act of 1974 (29 U.S.C. 
1108(b)(2)(B)(ii)(I)(ee)) is amended by inserting at the 
end the following: ‘‘A covered service provider may not be 
the responsible plan fiduciary for purposes of the disclo-
sures required under clause (iii). Notwithstanding the pre-
ceding sentence, in the case of a pharmacy benefit man-
ager who sponsors a covered plan for the employees of the 
pharmacy benefit manager, the pharmacy benefit manager 
may be considered the responsible plan fiduciary for such 
plan.’’. 
(d) 
PROHIBITION
ON
INDEMNIFICATION
FOR 
BREACHES BY A SECTION 3(21)(C) FIDUCIARY.—Section 
410(a) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1110(a)) is amended— 
(1) by striking ‘‘Except’’ and inserting ‘‘(1) Ex-
cept’’; and 
(2) by adding at the end the following: 
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‘‘(2) Except as provided in subsection (b)(2), no per-
son or entity deemed to be a fiduciary under section 
3(21)(C) may be indemnified, directly or indirectly, or oth-
erwise relieved from liability for any responsibility, obliga-
tion, or duty of such person or entity under this part. 
‘‘(3) Any provision of contract in violation of para-
graph (2) shall be void as against public policy.’’. 
(e) 
TECHNICAL
AMENDMENT.—Section 
408(b)(2)(B)(i) of the Employee Retirement Income Secu-
rity Act of 1974 (29 U.S.C. 1108(b)(2)(B)(i)) is amended 
by striking ‘‘this clause’’ and inserting ‘‘this subpara-
graph’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to plan years begin-
ning with the first plan year that begins at least 12 
months after the date of enactment of this Act. 
Æ 
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