1. Short title This Act may be cited as the Protecting Patients Against PBM Abuses Act . 2. Establishing certain requirements for pharmacy benefit managers under part D of the Medicare program (a) Prescription drug plans Section 1860D–12(b) of the Social Security Act ( 42 U.S.C. 1395w–112(b) ) is amended by adding at the end the following new paragraph: (9) Responsibility of pharmacy benefit managers (A) In general Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall provide that any pharmacy benefit manager acting on behalf of such sponsor complies with the following provisions: (i) The pharmacy benefit manager derives no income with respect to any services provided in connection with covered part D drugs furnished under such plan from any entity other than flat dollar amount service fees. (ii) The pharmacy benefit manager receives such service fees only pursuant to a written agreement between the manager and such sponsor that sets forth the amount of any such fees. Any such fee may not be directly or indirectly based on, or contingent upon— (I) the price of any covered part D drug; (II) discounts, rebates, fees, or other remuneration with respect to such drugs