WASHINGTON – The House early Thursday just narrowly passed a wide-ranging bill to deliver President Trump’s domestic agenda, after Speaker Mike Johnson put down several mini-rebellions in Republican ranks.
The 2025 budget bill contains several provisions aimed at reforming how pharmacy benefit managers (PBMs) operate, particularly within Medicare Part D plans. Key highlights include limiting PBM compensation to flat fees, requiring increased transparency in PBM practices, and prohibiting spread pricing, which is when PBMs charge plans more than they pay pharmacies. Additionally, the bill aims to standardize contracting terms and practices between PBMs and pharmacies.
The measure now proceeds to the Senate for final approval.
The National Community Pharmacists Association issued the following statement from CEO B. Douglas Hoey on the budget reconciliation bill that includes language that would eliminate pharmacy benefit manager spread pricing and require transparent and fair reimbursement (Medicaid fee-for-service-rate) in all state Medicaid managed care programs:
“While doing nothing to reduce the cost of drugs for Medicaid beneficiaries, spread pricing has been costing federal and state taxpayers hundreds of millions of dollars every year. Through low and underwater reimbursements, PBMs have been systematically squeezing local pharmacies and helping drive them out of business. It’s egregious. Moving to a fairer pharmacy reimbursement system that ends spread pricing and requires transparent, predictable reimbursements to pharmacies is a step in the right direction. We urge the Senate to swiftly pass these provisions and President Trump to sign them into law.”
"Spread pricing is what happens when PBMs charge insurance plans like Medicaid one price for prescription medications, reimburse pharmacies that dispense them a much lower price, and then keep a big chunk of the difference (the spread) for themselves. For years, NCPA has led the way in pushing Congress and the executive branch to ban this practice and to pay pharmacies in a simple, predictable format that covers their costs to dispense prescription medications. The reconciliation bill now heads to the Senate for further consideration. NCPA will continue strongly advocating for these Medicaid policies and will also keep fighting for Medicare Part D contract reform to be included in other legislation moving this year," NCPA added.
The National Retail Federation also issued the following statement from NRF executive vice president of Government Relations David French after the House voted in favor of key tax provisions as part of the 2025 reconciliation process.
“NRF commends the House for passing this forward-thinking tax package and President Trump’s ‘One Big Beautiful Bill’ to provide much-needed relief for families and businesses across the nation. This legislation represents a clear commitment to fostering economic growth, stability and opportunity for all Americans.
“For retailers, predictability in the tax code is critical to maintaining competitiveness, investing in employees and delivering value to customers. By restoring key provisions that encourage investment and growth, this measure gives businesses the confidence they need to plan for the future and support their communities.
“We urge the Senate to act swiftly to ensure that these benefits reach American families and businesses as soon as possible.”
Last week, NRF issued a statement of support for House Ways and Means Committee Chairman Jason Smith’s tax proposal, calling it a “major win for retailers and the American economy.”
Earlier this month, NRF brought together more than a dozen retail tax executives in Washington to advocate before Congress and the administration for the extension of the Tax Cuts and Jobs Act.
As the leading authority and voice for retail, NRF will continue to champion policies that drive economic growth.
