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PBM reforms signed into law, reshaping Medicare Part D drug pricing transparency

By AJMC.com  
   February 05, 2026

The House this week voted in favor of a spending bill that includes major PBM reforms aimed at increasing price transparency for consumers and potentially reducing out-of-pocket pharmacy costs. Hours after the vote, President Trump signed the bill into law. The bill includes amendments to the Consolidated Appropriations Act of 2026 that would 'delink' PBM compensation from Medicare Part D list prices and rebates. Instead, the policy requires PBMs to receive flat administrative fees, reducing incentives to favor higher-priced drugs. PBMs currently generate profit through manufacturer rebates and spread pricing, practices that often lack transparency and could result in consumers paying out-of-pocket costs or co-pays based on list prices rather than negotiated rates.

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