I 
119TH CONGRESS 
1ST SESSION H. R. 4409 
To prohibit the common ownership pharmacy benefit managers and phar-
macies that provide services under contracts with Federal health plans 
for Federal employees. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 15, 2025 
Mr. KRISHNAMOORTHI (for himself and Mrs. HARSHBARGER) introduced the 
following bill; which was referred to the Committee on Oversight and 
Government Reform 
A BILL 
To prohibit the common ownership pharmacy benefit man-
agers and pharmacies that provide services under con-
tracts with Federal health plans for Federal employees. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fair Pharmacies for 
Federal Employees Act of 2025’’. 
SEC. 2. PROHIBITIONS RELATING TO ANTICOMPETITIVE 
PHARMACY OWNERSHIP AND CONTRACTS. 
(a) PROHIBITION ON PHARMACY OR PHARMACY BEN-
EFIT MANAGER OWNERSHIP BY ENTITIES PROVIDING IN-
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Human Services, or the attorney general of a State under 
any other provision of law. 
(d) DEFINITIONS.—In this section: 
(1) HEALTH PLAN.—The term ‘‘health plan’’ 
means a group insurance policy or contract, medical 
or hospital service agreement, membership or sub-
scription contract, or similar group arrangement 
provided by a carrier for the purpose of providing, 
paying for, or reimbursing expenses for health serv-
ices. 
(2) PERSON.—The term ‘‘person’’ has the 
meaning given the term in section 8 of the Sherman 
Act (15 U.S.C. 7). 
(3) PHARMACY.— 
(A) IN GENERAL.—The term ‘‘pharmacy’’ 
means any person, business, or entity licensed, 
registered, or otherwise permitted by a State or 
a territory of the United States to dispense, de-
liver, or distribute a controlled substance, pre-
scription drug, or other medication— 
(i) to the general public; or 
(ii) to a bed patient for immediate ad-
ministration. 
(B) INCLUSIONS.—The term ‘‘pharmacy’’ 
includes— 
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(i) a mail-order pharmacy; 
(ii) a specialty pharmacy; 
(iii) a retail pharmacy; 
(iv) a nursing home pharmacy; 
(v) a long-term care pharmacy; 
(vi) a hospital pharmacy; 
(vii) an infusion or other outpatient 
treatment pharmacy; 
(viii) any organization the National 
Provider Identifier (NPI) registration of 
which has 1 or more taxonomy codes under 
the pharmacy section of the National Uni-
form Claim Committee (or a subsequent 
organization); and 
(ix) any other type of pharmacy. 
(4) PHARMACY BENEFIT MANAGER.—The term 
‘‘pharmacy benefit manager’’ means any person, 
business, or other entity, such as a third-party ad-
ministrator, regardless of whether such person, busi-
ness, or entity identifies itself as a pharmacy benefit 
manager, that, either directly or indirectly through 
an intermediary (including an affiliate, subsidiary, 
or agent) or an arrangement with a third party— 
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(A) acts as a negotiator of prices, rebates, 
fees, or discounts for prescription drugs on be-
half of a health plan or health plan sponsor; 
(B) contracts with pharmacies to create 
pharmacy networks and designs and manages 
such networks; or 
(C) manages or administers the prescrip-
tion drug benefits provided by a health plan, in-
cluding the processing and payment of claims 
for prescription drugs, arranging alternative ac-
cess to or funding for prescription drugs, the 
performance of utilization management services, 
including drug utilization review, the processing 
of drug prior authorization requests, the adju-
dication of appeals or grievances related to the 
prescription drug benefit, contracting with net-
work pharmacies, controlling the cost of covered 
prescription drugs, or the provision of related 
services. 
(5) QUALIFIED CARRIER.—The term ‘‘qualified 
carrier’’ means a voluntary association, corporation, 
partnership, or other nongovernmental organization 
which is lawfully engaged in providing, paying for, 
or reimbursing the cost of, health services under 
group insurance policies or contracts, medical or 
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hospital service agreements, membership or subscrip-
tion contracts, or similar group arrangements, in 
consideration of premiums or other periodic charges 
payable to the carrier, including a health benefits 
plan duly sponsored or underwritten by an employee 
organization and an association of organizations or 
other entities described in this paragraph sponsoring 
a health benefits plan. 
Æ 
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