Rebates fully passed through to the sponsor are not a violation
Making further consolidated appropriations for the fiscal year ending September 30, 2026, and for other purposes, section 6224, Sec. 6224.
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Rebates fully passed through to the sponsor are not a violation
The document says “shall not”Who acts: pharmacy benefit managersHow: statuteSec. 6224 in the PDF
What the document says
“even if such price concessions are calculated as a percentage of a drug's price, shall not be considered a violation of the requirements of clause (i) if they are fully passed through to a PDP sponsor and are compliant with all regulatory and subregulatory requirements related to direct and indirect remuneration”
Rebates, discounts and other price concessions a manager or affiliate receives from manufacturers do not violate the fee rule, even where they are figured as a percentage of a drug's price, so long as they are fully passed through to the sponsor and comply with the direct and indirect remuneration requirements, including where a sponsor is acting as its own manager.
What the document actually says
“even if such price concessions are calculated as a percentage of a drug's price, shall not be considered a violation of the requirements of clause (i) if they are fully passed through to a PDP sponsor and are compliant with all regulatory and subregulatory requirements related to direct and indirect remuneration”
That sentence, in plain words
A cut of a drug's price does not break the rule above. It must be handed on to the plan in full. It must also follow the other rules.
What this is about
A rebate is money a drug maker gives back. If the middleman keeps it, it is income. If it goes to the plan, the plan can lower costs.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Consolidated Appropriations Act, 2026, Public Law 119-75, sec. 6224, 140 Stat. 670 (2026). https://www.govinfo.gov/content/pkg/PLAW-119publ75/html/PLAW-119publ75.htm
This page
“Rebates fully passed through to the sponsor are not a violation,” Consolidated Appropriations Act, 2026, section 6224, Sec. 6224. Read the Mandate, https://readthemandate.org/consolidated-appropriations-act-2026/proposal/sec6224-rebates-passed-through/ (retrieved October 10, 2026).
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