charge the plan or enrollee, a price for a prescription drug that exceeds the price paid to the pharmacy, excluding penalties or fees paid by pharmacies to such plan, issuer, or entity. (2) Default to pass-through pricing For purposes of paragraph (1), a designated plan administrator of an applicable self-insured health plan, or an entity providing pharmacy benefit management services to such health plan shall not charge the plan or enrollee an amount for a presciption drug that exceeds the price paid to the pharmacy, excluding penalties paid by pharmacies to such plan or entity, without the express permission of the health plan sponsor. (3) Supplementary reporting for intra-company prescription drug transactions A health insurance issuer of group health insurance coverage or an entity providing pharmacy benefits management services under a group health plan or group health insurance coverage that conducts transactions with a wholly or partially owned pharmacy, as described in paragraph (2), shall submit, together with the report under subsection (b), a supplementary quarterly report to the plan sponsor that includes— (A) an explanation of any benefit design parameters that encourage enrollees in the plan or coverage to fill prescriptions at mail order, specialty, or retail pharmacies that are wholly or partially owned by that issuer or entity