Representative Tran Passes Bipartisan Reform to Lower Prescription Drug Costs

Washington, DC - Today, key provisions of bipartisan legislation to bring down prescription drug prices, the PBM Reform Act, co-led by U.S. Representative Derek Tran (D-CA-45), alongside Representatives Earl "Buddy" Carter (R-GA-01) and Debbie Dingell (D-MI-06), passed the House in a bipartisan vote.

In a vote of 341-88, the House passed H.R. 7148, Consolidated Appropriations Act, 2026, a government funding package that included language from Tran's bill. This bipartisan bill lowers drug costs by reforming pharmacy benefit managers' (PBMs) practices and increasing transparency and accountability of PBM operations. H.R. 7148 will now head to the Senate for consideration.

"I owned a community pharmacy in Orange County with my wife. I've seen firsthand how patients are priced out of staying healthy by high drug costs," said Representative Tran. "As prices continue to skyrocket, I'm focused on the bipartisan, common-sense solutions that bring down the cost of essential care for the American people. I'm proud to work across the aisle to pass these much-needed reforms that bring more transparency and accountability to the PBM industry, encourage the competitive practices that bring prices down, and prevent price gouging for life-saving medication."

The provisions of Tran's PBM Reform Act that passed in today's government funding package will:

• Remove financial incentives that lead to price gouging, prohibiting financial compensation from Medicare from being tied to a drug's sticker price.
• Authorize independent auditing and enforcement measures of PBM's drug pricing practices to improve transparency and accountability in PBM operations.
• Encourage more competition and transparency by mandating that PBMs comply with annual reporting requirements, such as information related to drug costs and pricing, rebates, potential conflicts of interest, and formulary determinations.

"For independent community and long-term care pharmacies, the PBM reforms included in this package are as welcomed as they are long overdue," said Anne Cassity, Senior Vice President of Government Affairs, National Community Pharmacists Association. "We're grateful for the doggedness of pharmacy champions like Rep. Tran in advancing them through the House, and look forward to getting this through the Senate and to the president's desk as quickly as possible. Independent pharmacies and the patients they treat need relief from PBM manipulations, and they need it soon."

"This must pass legislation is a bipartisan victory for patients and the community pharmacies that serve them. Lawmakers from both parties came together to fix a system that has been failing for far too long and their collaboration delivers real, meaningful relief for pharmacies and the people who depend on them," said Mark Kinney, Executive Vice President of Government Relations, Independent Pharmacy Cooperative.

Pharmacy benefit managers were initially created as middlemen to reduce administrative costs for insurers, validate a patient's eligibility, administer plan benefits, and negotiate costs between pharmacies and health plans. Over time, PBMs have consolidated to comprise three companies that control 80% of the prescription drug market. Industry consolidation and lack of transparency have led to local pharmacy closures, limited access, and higher medication costs for patients across the country.

Representative Tran remains committed to lowering health care costs and preserving vital access to health care for families in CA-45. Tran signed a letter to House Leadership urging the permanent extension of premium tax credits under the Affordable Care Act, and cosponsored H.R. 4849, the Protecting Healthcare and Lowering Costs Act, to codify those tax credits in law. Tran voted against dismantling access to affordable health care and signed a discharge petition in the House to bring H.R. 2753, the Hands Off Medicaid and SNAP Act, to the House floor for a vote. Tran co-leads H.R. 4641, the Keep Kids Covered Act, with Representative Kathy Castor (FL-14), which would reduce the cost of healthcare for parents by ensuring continuous healthcare coverage for all children enrolled in Medicaid or the Children's Health Insurance Program (CHIP).

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Congressman Derek Tran represents California's 45th Congressional District. Serving his first term in Congress, Congressman Tran is a member of the House Armed Services Committee and House Small Business Committee, where he is Ranking Member of the Oversight, Investigations, and Regulations Subcommittee. Congressman Tran is the son of Vietnamese refugees, a Veteran, and fought for consumers as an attorney before entering Congress.