Sec. 6701
OVERSIGHT OF PHARMACY BENEFIT MANAGEMENT SERVICES.
What
(a) Public Health Service Act .— Title XXVII of the Public Health Service Act ( 42 U.S.C. 300gg et seq. ) is amended — (1) in part D ( 42 U.S.C. 300gg–111 et seq. ), by adding at the end the following new section: ; and (2) in section 2723 ( 42 U.S.C. 300gg–22 )— (A) in subsection (a)— (i) in paragraph (1), by inserting “ (other than section 2799A–11) ” after “ part D ”; and (ii) in paragraph (2), by inserting “ (other than section 2799A–11) ” after “ part D ”; and (B) in subsection (b)— (i) in paragraph (1), by inserting “ (other than section 2799A–11) ” after “ part D ”; (ii) in paragraph (2)(A), by inserting “ (other than section 2799A–11) ” after “ part D ”; and (iii) in paragraph (2)(C)(ii), by inserting “ (other than section 2799A–11) ” after “ part D ”. (b) Employee Retirement Income Security Act of 1974 .— (1) In general .— Subtitle B of title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1021 et seq. ) is amended — (A) in subpart B of part 7 ( 29 U.S.C. 1185 et seq. ), by adding at the end the following: ; (B) in section 502 ( 29 U.S.C. 1132 )— (i) in subsection (a)(6), by striking “ or (9) ” and inserting “ (9), or (13) ”; (ii) in subsection (b)(3), by striking “ under subsection (c)(9) ” and inserting “ under paragraphs (9) and (13) of subsection (c) ”; and (iii) in subsection (c), by adding at the end the following: “(13) Secretarial enforcement authority relating to oversight of pharmacy benefit management services .— “(A) Failure to provide information .— The Secretary may impose a penalty against a plan administrator of a group health plan, a health insurance issuer offering group health insurance coverage, or an entity providing pharmacy benefit management services on behalf of such a plan or issuer, or an applicable entity (as defined in section 726(e)) that violates section 726(a); an entity providing pharmacy benefit management services on behalf of such a plan or issuer that fails to provide the information required under section 726(b); or any person who causes a group health plan to fail to provide the information required under section 726(c), in the amount of $10,000 for each day during which such violation continues or such information is not disclosed or reported. “(B) False information .— The Secretary may impose a penalty against a plan administrator of a group health plan, a health insurance issuer offering group health insurance coverage, an entity providing pharmacy benefit management services, or an applicable entity (as defined in section 726(e)) that knowingly provides false information under section 726, in an amount not to exceed $100,000 for each item of false information. Such penalty shall be in addition to other penalties as may be prescribed by law. “(C) Waivers .— The Secretary may waive penalties under subparagraph (A), or extend the period of time for compliance with a requirement of this section, for an entity in violation of section 726 that has made a good-faith effort to comply with the requirements of section 726.” ; and (C) in section 732(a) ( 29 U.S.C. 1191a(a) ), by striking “ section 711 ” and inserting “ sections 711 and 726 ”. (2) Clerical amendment .— The table of contents in section 1 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq. ) is amended by inserting after the item relating to section 725 the following new item: (c) Internal Revenue Code of 1986 .— (1) In general .— Chapter 100 of the Internal Revenue Code of 1986 is amended — (A) by adding at the end of subchapter B the following: ; (2) Exception for certain group health plans .— Section 9831(a)(2) of the Internal Revenue Code of 1986 is amended by inserting “ other than with respect to section 9826, ” before “ any group health plan ”. (3) Enforcement .— Section 4980D of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: “(g) Application to Requirements Imposed on Certain Entities Providing Pharmacy Benefit Management Services .— In the case of any requirement under section 9826 that applies with respect to an entity providing pharmacy benefit management services on behalf of a group health plan, any reference in this section to such group health plan (and the reference in subsection (e)(1) to the employer) shall be treated as including a reference to such entity.” . (4) Clerical amendment .— The table of sections for subchapter B of chapter 100 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:Sec. 6701 OVERSIGHT OF PHARMACY BENEFIT MANAGEMENT SERVICES.
Who
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Amounts
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Deadlines
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Text From the enrolled or engrossed source
(a) Public Health Service Act .— Title XXVII of the Public Health Service Act ( 42 U.S.C. 300gg et seq. ) is amended — (1) in part D ( 42 U.S.C. 300gg–111 et seq. ), by adding at the end the following new section: ; and (2) in section 2723 ( 42 U.S.C. 300gg–22 )— (A) in subsection (a)— (i) in paragraph (1), by inserting “ (other than section 2799A–11) ” after “ part D ”; and (ii) in paragraph (2), by inserting “ (other than section 2799A–11) ” after “ part D ”; and (B) in subsection (b)— (i) in paragraph (1), by inserting “ (other than section 2799A–11) ” after “ part D ”; (ii) in paragraph (2)(A), by inserting “ (other than section 2799A–11) ” after “ part D ”; and (iii) in paragraph (2)(C)(ii), by inserting “ (other than section 2799A–11) ” after “ part D ”. (b) Employee Retirement Income Security Act of 1974 .— (1) In general .— Subtitle B of title I of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1021 et seq. ) is amended — (A) in subpart B of part 7 ( 29 U.S.C. 1185 et seq. ), by adding at the end the following: ; (B) in section 502 ( 29 U.S.C. 1132 )— (i) in subsection (a)(6), by striking “ or (9) ” and inserting “ (9), or (13) ”; (ii) in subsection (b)(3), by striking “ under subsection (c)(9) ” and inserting “ under paragraphs (9) and (13) of subsection (c) ”; and (iii) in subsection (c), by adding at the end the following: “(13) Secretarial enforcement authority relating to oversight of pharmacy benefit management services .— “(A) Failure to provide information .— The Secretary may impose a penalty against a plan administrator of a group health plan, a health insurance issuer offering group health insurance coverage, or an entity providing pharmacy benefit management services on behalf of such a plan or issuer, or an applicable entity (as defined in section 726(e)) that violates section 726(a); an entity providing pharmacy benefit management services on behalf of such a plan or issuer that fails to provide the information required under section 726(b); or any person who causes a group health plan to fail to provide the information required under section 726(c), in the amount of $10,000 for each day during which such violation continues or such information is not disclosed or reported. “(B) False information .— The Secretary may impose a penalty against a plan administrator of a group health plan, a health insurance issuer offering group health insurance coverage, an entity providing pharmacy benefit management services, or an applicable entity (as defined in section 726(e)) that knowingly provides false information under section 726, in an amount not to exceed $100,000 for each item of false information. Such penalty shall be in addition to other penalties as may be prescribed by law. “(C) Waivers .— The Secretary may waive penalties under subparagraph (A), or extend the period of time for compliance with a requirement of this section, for an entity in violation of section 726 that has made a good-faith effort to comply with the requirements of section 726.” ; and (C) in section 732(a) ( 29 U.S.C. 1191a(a) ), by striking “ section 711 ” and inserting “ sections 711 and 726 ”. (2) Clerical amendment .— The table of contents in section 1 of the Employee Retirement Income Security Act of 1974 ( 29 U.S.C. 1001 et seq. ) is amended by inserting after the item relating to section 725 the following new item: (c) Internal Revenue Code of 1986 .— (1) In general .— Chapter 100 of the Internal Revenue Code of 1986 is amended — (A) by adding at the end of subchapter B the following: ; (2) Exception for certain group health plans .— Section 9831(a)(2) of the Internal Revenue Code of 1986 is amended by inserting “ other than with respect to section 9826, ” before “ any group health plan ”. (3) Enforcement .— Section 4980D of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: “(g) Application to Requirements Imposed on Certain Entities Providing Pharmacy Benefit Management Services .— In the case of any requirement under section 9826 that applies with respect to an entity providing pharmacy benefit management services on behalf of a group health plan, any reference in this section to such group health plan (and the reference in subsection (e)(1) to the employer) shall be treated as including a reference to such entity.” . (4) Clerical amendment .— The table of sections for subchapter B of chapter 100 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: