S 5586 — 119th Congress

Ensuring Accurate Payments to Specialty Pharmacies Act

Introduced Sep 29, 2026 Open for voting
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Core Policy Mechanism Top 3

Non-retail pharmacy drug cost survey and benchmark regime

Requires the federal government to conduct monthly surveys of specialty and mail-order pharmacies to set separate Medicaid drug reimbursement benchmarks, net of discounts, distinct from retail pharmacy benchmarks. Establishes civil monetary penalties against specialty and mail-order pharmacies that fail to respond to or comply with federal Medicaid drug cost surveys, enforced by the Secretary of Health and Human Services in consultation with the Inspector General. Requires states to mandate that specialty and mail-order pharmacies receiving any Medicaid-related payments — including through managed care or pharmacy benefit managers — must respond to federal drug cost surveys. Bans states from using drug price data reported by specialty or mail-order pharmacies when setting Medicaid reimbursement rates for retail community pharmacies, keeping the two pricing tracks separate. Requires the government to publicly release drug acquisition price data gathered from specialty and mail-order pharmacy surveys, including monthly response rates, lists of non-compliant pharmacies, sampling methods, and price concession information. Expands existing Medicaid pharmacy payment disclosure rules to explicitly cover payment rates made through managed care organizations and other specified entities, closing a gap in required reporting.

  • Population Scope Medium Directly affects specialty and mail-order pharmacies, state Medicaid programs, and managed care entities nationwide — a broad but commercially defined class, not the general public.
  • Budgetary Magnitude Low The core survey, penalty, disclosure, and prohibition provisions carry no independent appropriation; funding is addressed in separate components.
  • Legal / Regulatory Depth High Creates new statutory mandates — a separate benchmark track, binding participation obligations, civil monetary penalties, and a cross-use prohibition — that materially restructure how Medicaid drug prices are set for non-retail pharmacies.
  • Degree of Discretion Granted Medium Mandatory 'shall' language governs the core survey and prohibition duties, but the Secretary of Health and Human Services (HHS) retains discretion over penalty levels, sampling methodology, and optional pharmacy-type breakdowns.
  • Implementation & Enforcement Burden High Stands up recurring federal enforcement infrastructure — monthly surveys, civil monetary penalty adjudication, public non-compliance reporting, and managed care disclosure auditing — imposing sustained compliance obligations on pharmacies and states.
  • Temporal Commitment High Persists indefinitely until Congress acts to repeal it.
No signal yet

Funding / Appropriations Top 3

Increased annual funding for pharmacy survey program

Adds $9 million per year to the existing Medicaid pharmacy survey funding authorization beginning in FY 2027, expanding resources available to conduct drug acquisition cost surveys of specialty and mail-order pharmacies.

  • Population Scope Low Directly affects only Department of Health and Human Services (HHS) and Centers for Medicare & Medicaid Services (CMS) survey administrators, a narrow federal administrative population.
  • Budgetary Magnitude Low $9 million per year is a modest recurring authorization that supplements an existing appropriation with no stated end date, but remains small in federal budget terms.
  • Legal / Regulatory Depth Low Adjusts an existing funding authorization level without altering any substantive right, obligation, or prohibition — a discrete administrative amendment.
  • Degree of Discretion Granted Low Funds flow through the existing HHS administrative channel with no new delegated rulemaking authority or agency discretion created.
  • Implementation & Enforcement Burden Low Introduces no new enforcement mechanism; it simply increases available appropriations for a program whose enforcement obligations are established elsewhere.
  • Temporal Commitment High Recurring annual authorization with no stated end date persists indefinitely until Congress acts to repeal or modify it.
No signal yet

Funding / Appropriations Top 3

Inspector General oversight studies with $5M appropriation

Directs the Department of Health and Human Services Inspector General (IG) to periodically study non-retail pharmacy survey data, including transfer prices and pharmacy benefit manager-affiliated pharmacy costs, and appropriates $5 million for FY 2027.

  • Population Scope Low Directly affects the HHS Inspector General (IG) office and pharmacy benefit manager-affiliated pharmacies — a narrow institutional population, not the general public.
  • Budgetary Magnitude Low Appropriates $5 million for FY 2027 only, a one-time, modest sum limited to a single fiscal year.
  • Legal / Regulatory Depth Medium Creates a new statutory duty for the HHS IG to conduct periodic studies with a specific subject-matter mandate, binding agency conduct without altering substantive rights or prohibitions across the regulated population.
  • Degree of Discretion Granted Medium Mandates periodic studies on specified topics but leaves the IG discretion over methodology, scope, and timing of individual reports.
  • Implementation & Enforcement Burden Low Imposes an affirmative study obligation on the IG rather than creating enforcement infrastructure or compliance requirements on regulated entities.
  • Temporal Commitment Low The appropriation is limited to FY 2027, self-terminating within one year unless Congress acts to extend or re-appropriate funding.
No signal yet

No possible riders have been surfaced for this bill.

Summary

This bill changes how Medicaid tracks the prices that specialty and mail-order pharmacies pay for drugs. Right now, the federal government surveys retail pharmacies to set drug reimbursement benchmarks, but those benchmarks are also applied to specialty pharmacies, which often pay very different prices. Among other elements, the bill * requires the federal government to run monthly surveys of specialty and mail-order pharmacies to build separate drug cost benchmarks for those pharmacies; * mandates that any specialty or mail-order pharmacy receiving Medicaid payments must participate in those surveys; * creates financial penalties for pharmacies that refuse to respond; * makes survey results and pricing data available to the public; * bars states from using specialty pharmacy pricing data to set reimbursement rates for regular retail pharmacies; * directs the Department of Health and Human Services (HHS) Inspector General (IG) to study the survey data, including prices set within pharmacy benefit manager networks; and * adds new federal funding to support the expanded survey program and IG oversight.

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Version Event Date User support Your vote Roll calls
Original
Initial publication
Sep 29, 2026
Sep 29, 2026 No votes yet — —

Core Policy Mechanism Top 3

Non-retail pharmacy drug cost survey and benchmark regime

Requires the federal government to conduct monthly surveys of specialty and mail-order pharmacies to set separate Medicaid drug reimbursement benchmarks, net of discounts, distinct from retail pharmacy benchmarks. Establishes civil monetary penalties against specialty and mail-order pharmacies that fail to respond to or comply with federal Medicaid drug cost surveys, enforced by the Secretary of Health and Human Services in consultation with the Inspector General. Requires states to mandate that specialty and mail-order pharmacies receiving any Medicaid-related payments — including through managed care or pharmacy benefit managers — must respond to federal drug cost surveys. Bans states from using drug price data reported by specialty or mail-order pharmacies when setting Medicaid reimbursement rates for retail community pharmacies, keeping the two pricing tracks separate. Requires the government to publicly release drug acquisition price data gathered from specialty and mail-order pharmacy surveys, including monthly response rates, lists of non-compliant pharmacies, sampling methods, and price concession information. Expands existing Medicaid pharmacy payment disclosure rules to explicitly cover payment rates made through managed care organizations and other specified entities, closing a gap in required reporting.

  • Population Scope Medium Directly affects specialty and mail-order pharmacies, state Medicaid programs, and managed care entities nationwide — a broad but commercially defined class, not the general public.
  • Budgetary Magnitude Low The core survey, penalty, disclosure, and prohibition provisions carry no independent appropriation; funding is addressed in separate components.
  • Legal / Regulatory Depth High Creates new statutory mandates — a separate benchmark track, binding participation obligations, civil monetary penalties, and a cross-use prohibition — that materially restructure how Medicaid drug prices are set for non-retail pharmacies.
  • Degree of Discretion Granted Medium Mandatory 'shall' language governs the core survey and prohibition duties, but the Secretary of Health and Human Services (HHS) retains discretion over penalty levels, sampling methodology, and optional pharmacy-type breakdowns.
  • Implementation & Enforcement Burden High Stands up recurring federal enforcement infrastructure — monthly surveys, civil monetary penalty adjudication, public non-compliance reporting, and managed care disclosure auditing — imposing sustained compliance obligations on pharmacies and states.
  • Temporal Commitment High Persists indefinitely until Congress acts to repeal it.
No signal yet

Core Policy Mechanism

Non-retail pharmacy drug cost survey and benchmark regime

Funding / Appropriations Top 3

Increased annual funding for pharmacy survey program

Adds $9 million per year to the existing Medicaid pharmacy survey funding authorization beginning in FY 2027, expanding resources available to conduct drug acquisition cost surveys of specialty and mail-order pharmacies.

  • Population Scope Low Directly affects only Department of Health and Human Services (HHS) and Centers for Medicare & Medicaid Services (CMS) survey administrators, a narrow federal administrative population.
  • Budgetary Magnitude Low $9 million per year is a modest recurring authorization that supplements an existing appropriation with no stated end date, but remains small in federal budget terms.
  • Legal / Regulatory Depth Low Adjusts an existing funding authorization level without altering any substantive right, obligation, or prohibition — a discrete administrative amendment.
  • Degree of Discretion Granted Low Funds flow through the existing HHS administrative channel with no new delegated rulemaking authority or agency discretion created.
  • Implementation & Enforcement Burden Low Introduces no new enforcement mechanism; it simply increases available appropriations for a program whose enforcement obligations are established elsewhere.
  • Temporal Commitment High Recurring annual authorization with no stated end date persists indefinitely until Congress acts to repeal or modify it.
No signal yet

Funding / Appropriations

Increased annual funding for pharmacy survey program

Funding / Appropriations Top 3

Inspector General oversight studies with $5M appropriation

Directs the Department of Health and Human Services Inspector General (IG) to periodically study non-retail pharmacy survey data, including transfer prices and pharmacy benefit manager-affiliated pharmacy costs, and appropriates $5 million for FY 2027.

  • Population Scope Low Directly affects the HHS Inspector General (IG) office and pharmacy benefit manager-affiliated pharmacies — a narrow institutional population, not the general public.
  • Budgetary Magnitude Low Appropriates $5 million for FY 2027 only, a one-time, modest sum limited to a single fiscal year.
  • Legal / Regulatory Depth Medium Creates a new statutory duty for the HHS IG to conduct periodic studies with a specific subject-matter mandate, binding agency conduct without altering substantive rights or prohibitions across the regulated population.
  • Degree of Discretion Granted Medium Mandates periodic studies on specified topics but leaves the IG discretion over methodology, scope, and timing of individual reports.
  • Implementation & Enforcement Burden Low Imposes an affirmative study obligation on the IG rather than creating enforcement infrastructure or compliance requirements on regulated entities.
  • Temporal Commitment Low The appropriation is limited to FY 2027, self-terminating within one year unless Congress acts to extend or re-appropriate funding.
No signal yet

Funding / Appropriations

Inspector General oversight studies with $5M appropriation