US SB882

Requires Medicare Part D prescription drug plan sponsors to allow any pharmacy meeting standard contract terms to participate in their network (effective January 1, 2028), with HHS establishing standards for "reasonable and relevant" contract terms by April 2027

Creates enforcement mechanism allowing pharmacies to submit allegations of contract term violations to HHS, with protections against retaliation and potential civil monetary penalties for non-compliant plan sponsors

Establishes "essential retail pharmacy" designation for pharmacies in medically underserved, rural, suburban, or urban areas lacking nearby alternatives, requiring HHS to publish biennial reports on reimbursement trends and network participation for these pharmacies

Prohibits pharmacy benefit managers (PBMs) from receiving income other than bona fide service fees, requires full pass-through of manufacturer rebates to plan sponsors, and mandates disgorgement of improperly retained funds

Imposes extensive PBM transparency requirements including annual reports on drug costs, rebates, affiliate pharmacy dispensing, manufacturer contracts with bundled pricing conditions, and broker/consultant compensation arrangements