Protecting Pharmacies in Medicaid Act

# Protecting Pharmacies in Medicaid Act – Plain Language Summary **What the Bill Would Do** This bill aims to protect pharmacies that serve Medicaid patients by requiring the federal government to survey pharmacies about drug prices starting in 2026. The bill would fund these surveys and require pharmacies to participate or face financial penalties. Additionally, it would restrict how pharmacy benefit managers (middlemen companies that negotiate drug prices) can charge pharmacies—specifically banning "spread pricing," a practice where these companies pocket the difference between what they pay for drugs and what they charge pharmacies, and instead requiring "pass-through" pricing where costs are more transparent. **Who It Affects and Current Status** The bill primarily affects retail pharmacies and mail-order pharmacies that participate in Medicaid, as well as the pharmacy benefit managers that work with them.

Patient access to affordable medications could also be impacted. Currently, the bill is in committee, meaning it has been introduced but has not yet been debated or voted on by the full Senate. Sponsor Senator Peter Welch (D-Vermont) introduced the legislation, but it has not advanced to a broader stage in the legislative process.