To amend the Employee Retirement Income Security Act of 1974 to ensure that pharmacy benefit managers are considered fiduciaries, and for other purposes.
Summary
H.R. 6837 aims to amend the Employee Retirement Income Security Act (ERISA) of 1974 by establishing fiduciary responsibilities for pharmacy benefit managers (PBMs). This bill seeks to ensure that PBMs act in the best interest of group health plans and their beneficiaries. It also mandates increased transparency regarding compensation received by PBMs and third-party administrators.
Expected Effects
The bill's enactment would likely increase oversight and accountability of PBMs. This could lead to changes in how prescription drug prices are negotiated and managed within group health plans. Ultimately, this could affect the costs and accessibility of prescription drugs for individuals covered by these plans.
Potential Benefits
- Increased transparency in PBM operations and compensation.
- Potential for reduced prescription drug costs for consumers.
- Greater accountability for PBMs in managing drug benefits.
- Enhanced protection for group health plan beneficiaries.
- Clarification of fiduciary responsibilities under ERISA.
Potential Disadvantages
- Potential for increased administrative costs for PBMs, which could be passed on to consumers.
- Possible legal challenges related to the interpretation and enforcement of fiduciary duties.
- Uncertainty regarding the impact on smaller PBMs and their ability to compete.
- Risk of unintended consequences affecting drug pricing and access.
- Potential for increased complexity in ERISA compliance.
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution, as it aims to improve healthcare access and affordability. Congress has the power to regulate interstate commerce, which includes the activities of PBMs. The bill does not appear to infringe upon any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).