1. Short title This Act may be cited as the Patients Before Middlemen Act or the PBM Act . 2. Responsibility of pharmacy benefit managers under Medicare part D (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 (or affiliate, subsidiary, or agent of a pharmacy benefit manager) acting on behalf of such sponsor— (i) derives no income with respect to any services provided in connection with part D utilization from any entity or individual other than bona fide service fees; and (ii) sets forth in an agreement between the pharmacy benefit manager and the PDP sponsor the amount of any bona fide service fee. The bona fide service fee must be a flat dollar amount, cannot be passed on in whole or in part to another party whether or not the pharmacy benefit manager takes title to the drug, and shall not be directly or indirectly based on, or contingent upon— (I) drug price, such as wholesale acquisition cost or drug benchmark price (such as average wholesale price); (II) discounts, rebates, fees, or other remuneration with respect to prescription drugs prescribed to enrollees in the plan