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 struc-
tures 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 provi-
sions 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. 
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 ‘‘Prescription Drug 
Supply Chain Pricing Transparency Act’’. 
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SEC. 2. GAO STUDY AND REPORT ON PRICE-RELATED COM-
PENSATION AND PAYMENT STRUCTURES IN 
THE PRESCRIPTION DRUG SUPPLY CHAIN. 
Section 1860D–42 of the Social Security Act (42 
U.S.C. 1395w–152) is amended by adding at the end the 
following new subsection: 
‘‘(e) GAO STUDY AND REPORT ON PRICE-RELATED 
COMPENSATION
AND PAYMENT STRUCTURES
IN
THE 
PRESCRIPTION DRUG SUPPLY CHAIN.— 
‘‘(1) STUDY.—The Comptroller General of the 
United States (in this subsection referred to as the 
‘Comptroller General’) shall conduct a study on the 
use of compensation and payment structures related 
to a prescription drug’s price within the retail pre-
scription drug supply chain. Such study shall include 
an overview of the following: 
‘‘(A) The type, magnitude, other features 
(such as the pricing benchmarks used), and 
prevalence of compensation and payment struc-
tures related to a prescription drug’s price, 
such as calculating fee amounts as a percentage 
of a prescription drug’s price, between inter-
mediaries in the prescription drug supply chain, 
including— 
‘‘(i) pharmacy benefit managers; 
‘‘(ii) part D plan sponsors; 
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‘‘(iii) drug wholesalers; 
‘‘(iv) pharmacies; 
‘‘(v) manufacturers; 
‘‘(vi) pharmacy services administrative 
organizations; 
‘‘(vii) brokers, auditors, consultants, 
and other entities that advise part D plan 
sponsors about pharmacy benefits or re-
view part D plan sponsor contracts with 
pharmacy benefit managers; and 
‘‘(viii) other service providers that 
contract with any of the entities described 
in clauses (i) through (vii), including re-
bate aggregators (or other entities that ne-
gotiate or process price concessions on be-
half of pharmacy benefit managers or plan 
sponsors). 
‘‘(B) The primary business models and 
compensation structures for each category of 
intermediary described in subparagraph (A). 
‘‘(C) Variation in price-related compensa-
tion structures between affiliated entities (such 
as entities with common ownership, either full 
or partial, and subsidiary relationships) and un-
affiliated entities. 
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‘‘(D) Potential conflicts of interest among 
contracting entities related to the use of pre-
scription drug price-related compensation struc-
tures, such as the potential for fees or other 
payments set as a percentage of a prescription 
drug’s price to advantage the formulary selec-
tion, distribution, or purchasing of prescription 
drugs with higher prices. 
‘‘(E) Patterns and trends in price-based 
compensation structures over time and between 
different market segments, such as under this 
part and the Medicaid program under title 
XIX. 
‘‘(F) The factors driving the consideration 
and use of price-related compensation struc-
tures in the prescription drug supply chain. 
‘‘(G) Other issues determined to be rel-
evant and appropriate by the Comptroller Gen-
eral. 
‘‘(2) REPORT.—Not later than 2 years after the 
date of enactment of this subsection, the Comp-
troller General shall submit to Congress a report 
containing the results of the study conducted under 
paragraph (1), together with recommendations for 
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such legislation and administrative action as the 
Comptroller General determines appropriate.’’. 
Æ 
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