I 
118TH CONGRESS 
1ST SESSION H. R. 3282 
To amend title XVIII of the Social Security Act to promote transparency 
of common ownership interests under parts C and D of the Medicare program. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 15, 2023 
Mrs. HARSHBARGER (for herself, Ms. SCHRIER, Mr. BILIRAKIS, and Ms. 
SCHAKOWSKY) introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on En-
ergy and Commerce, 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 amend title XVIII of the Social Security Act to promote 
transparency of common ownership interests under parts 
C and D of the Medicare program. 
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 ‘‘Promoting Trans-
parency and Healthy Competition in Medicare Act’’. 
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SEC. 2. PROMOTING TRANSPARENCY OF COMMON OWNER-
SHIP INTERESTS UNDER PARTS C AND D OF 
THE MEDICARE PROGRAM. 
(a) MEDICARE ADVANTAGE.—Section 1857(e) of the 
Social Security Act (42 U.S.C. 1395w–27(e)) is amended 
by adding at the end the following new paragraph: 
‘‘(6) REQUIRED DISCLOSURE OF CERTAIN IN-
FORMATION RELATING TO HEALTH CARE PROVIDER 
OWNERSHIP.— 
‘‘(A) IN GENERAL.—For plan years begin-
ning on or after January 1, 2025, a contract 
under this section with an MA organization 
shall require the organization to report to the 
Secretary, not later than 1 year after the last 
day of such plan year, the information de-
scribed in subparagraph (B) with respect to 
such plan year. 
‘‘(B) INFORMATION DESCRIBED.—For pur-
poses of subparagraph (A), the information de-
scribed in this subparagraph is, with respect to 
an MA organization and a plan year, the fol-
lowing: 
‘‘(i) The number of items and services 
furnished during such plan year by each 
specified provider (as defined in subpara-
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ownership or control interest (as so de-
fined). 
‘‘(D) NONAPPLICATION
OF
PAPERWORK 
REDUCTION
ACT.—Chapter 35 of title 44, 
United States Code, shall not apply to informa-
tion collected under this paragraph.’’. 
(b) PHARMACY BENEFIT MANAGER AND PHARMACY 
INFORMATION.—Section 1860D–12(b) of the Social Secu-
rity Act (42 U.S.C. 1395w–112(b)) is amended by adding 
at the end the following new paragraphs: 
‘‘(9) PROVISION OF INFORMATION RELATING TO 
PHARMACY OWNERSHIP.— 
‘‘(A) IN GENERAL.—For plan years begin-
ning on or after January 1, 2025, a contract 
entered into under this part with a PDP spon-
sor shall require the sponsor to report to the 
Secretary, not later than 1 year after the last 
day of such plan year, the information de-
scribed in subparagraph (B) with respect to 
such plan year. 
‘‘(B) INFORMATION DESCRIBED.—For pur-
poses of subparagraph (A), the information de-
scribed in this subparagraph is, for each pre-
scription drug plan offered by a PDP sponsor 
for a plan year, the following: 
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‘‘(i) The negotiated price for each cov-
ered part D drug for which benefits are 
available under such plan for each network 
pharmacy (including an identification of 
whether each such pharmacy is a specified 
pharmacy). 
‘‘(ii) The average per-drug amount of 
direct and indirect remuneration paid by 
specified pharmacies for such covered part 
D drugs dispensed during such plan year 
under such plan. 
‘‘(iii) The average per-drug amount of 
direct and indirect remuneration paid by 
pharmacies not described in clause (ii) for 
such covered part D drugs dispensed dur-
ing such plan year under such plan. 
‘‘(C) DEFINITIONS.—In this paragraph: 
‘‘(i) DIRECT
AND
INDIRECT
REMU-
NERATION.—The term ‘direct and indirect 
remuneration’ has the meaning given such 
term in section 423.308 of title 42, Code 
of Federal Regulations (or any successor 
regulation). 
‘‘(ii) 
NETWORK
PHARMACY.—The 
term ‘network pharmacy’ has the meaning 
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given such term in section 423.100 of title 
42, Code of Federal Regulations (or any 
successor regulation). 
‘‘(iii) NEGOTIATED PRICE.—The ‘ne-
gotiated price’ for a covered part D drug 
shall take into account all negotiated price 
concessions, such as discounts, direct or in-
direct subsidies, rebates, and direct or indi-
rect remunerations, for such drug, and in-
clude any dispensing fee for such drug. 
‘‘(iv) 
SPECIFIED
PHARMACY.—The 
term ‘specified pharmacy’ means, with re-
spect to an PDP sponsor and a plan year, 
a pharmacy with respect to which such 
sponsor (or any person with an ownership 
or control interest (as defined in section 
1124(a)(3)) in such sponsor) is a person 
with an ownership or control interest (as 
so defined). 
‘‘(D) NONAPPLICATION
OF
PAPERWORK 
REDUCTION
ACT.—Chapter 35 of title 44, 
United States Code, shall not apply to informa-
tion collected under this paragraph. 
‘‘(10) PROVISION OF INFORMATION BY PHAR-
MACY BENEFIT MANAGERS.— 
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‘‘(A) IN GENERAL.—For plan years begin-
ning on or after January 1, 2025, a contract 
entered into under this part with a PDP spon-
sor shall prohibit such sponsor from entering 
into a contract with a specified pharmacy ben-
efit manager for purposes of performing any 
service with respect to covered part D drugs 
dispensed under any prescription drug plan of-
fered by such sponsor for such plan year unless 
such manager agrees to report to the Secretary, 
not later than 1 year after the last day of such 
plan year, the information described in subpara-
graph (B) with respect to each prescription 
drug plan for which such manager is providing 
any such service during such plan year, regard-
less of the sponsor of such plan. 
‘‘(B) INFORMATION DESCRIBED.—For pur-
poses of subparagraph (A), the information de-
scribed in this subparagraph is, with respect to 
a pharmacy benefit manager performing serv-
ices under a prescription drug plan for a plan 
year, the following: 
‘‘(i) With respect to the total amount 
of pharmacy and manufacturer rebates col-
lected by such manager (or collected on be-
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half of such plan by any other entity with 
a contract in effect with such manager for 
such collection) for all covered part D 
drugs dispensed under such plan during 
such plan year— 
‘‘(I) the total amount of such re-
bates passed through to the PDP 
sponsor of such plan; and 
‘‘(II) the total amount of such re-
bates retained by such manager or 
such other entities. 
‘‘(ii) The total amount paid by such 
manager to pharmacies for drugs furnished 
under such plan during such plan year. 
‘‘(iii) The total amount of payments 
made by such sponsor to such manager as 
reimbursement for such manager’s pay-
ments described in clause (ii). 
‘‘(iv) The total amount of payments 
made by such sponsor to such manager as 
fees for services furnished by such man-
ager with respect to such plan for such 
plan year (not including payments de-
scribed in clause (iii)). 
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‘‘(v) The total amount of administra-
tive costs incurred by such manager for 
furnishing such services under such plan 
for such plan year. 
‘‘(vi) A specification as to whether 
such manager is a specified pharmacy ben-
efit manager with respect to the PDP 
sponsor of such plan. 
‘‘(C) DEFINITION.—In this paragraph, the 
term ‘specified pharmacy benefit manager’ 
means, with respect to an PDP sponsor and a 
plan year, a pharmacy benefit manager with re-
spect to which such sponsor (or any person with 
an ownership or control interest (as defined in 
section 1124(a)(3)) in such sponsor) is a person 
with an ownership or control interest (as so de-
fined).’’. 
(c) PUBLICATION.—Not later than January 1, 2027, 
the Secretary of Health and Human Services shall estab-
lish a process under which information submitted to the 
Secretary pursuant to the amendments made by this sec-
tion is publicly disclosed. Such process shall ensure that 
any information so disclosed does not identify a specific 
drug manufacturer, provider of services or supplier, phar-
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macy, pharmacy benefit manager, or any price charged 
with respect to a particular drug. 
Æ 
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