Net Effective Cost Transparency and Prescription Drug Affordability Act of 2026

(VII) A description, in a uniform format, of the projected net effective cost for the applicable plan year for each bid received by the covered service provider on behalf of the covered plan from an entity providing pharmacy benefit management services.

(46) Net effective cost. The term net effective cost means, in relation to a bid provided to a covered plan (as defined in section 408(b)(2)(B)(ii)) by an entity providing pharmacy benefit management services, the total annual cost to the covered plan of all covered drugs in the formulary that would be furnished to all enrollees in such plan for such year if such bid were accepted.

(47) Bona fide service fees. The term bona fide service fees means fees charged that represent fair-market value for bona fide, itemized services performed on behalf of a drug manufacturer or a covered plan (as defined in section 408(b)(2)(B)(ii)) and that the manufacturer would otherwise perform, or the covered plan would otherwise contract for in the absence of a service arrangement, and that are not passed on in whole or in part to the covered plan, whether or not an entity offering pharmacy benefit management services takes possession of the drug.