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This bill generally prohibits prescription drug manufacturers from providing rebates to pharmacy benefit managers (PBMs) or private health insurance plans. Specifically, the bill eliminates the safe harbor for rebates, or other payments, provided to PBMs that are intended to influence the applicable cost-sharing tier of the drug (e.g., placing the drug in a more favorable formulary tier). The bill further prohibits health insurance plans from receiving such rebates with respect to a prescription drug covered by the plan. Plans also must ensure PBMs do not receive any such rebates.
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