Congressman Tran Lowers Prescription Drug Costs in Major Bipartisan Legislative Accomplishment

Feb

2026

PRESS RELEASE

Congressman Tran Lowers Prescription Drug Costs in Major Bipartisan Legislative Accomplishment

Garden Grove, CA – In a significant win for working families across Los Angeles and Orange Counties, Congress passed key provisions of the PBM Reform Act, bipartisan legislation to lower the costs of prescription drug prices, co-led by Congressman Derek Tran (D-CA-45), Congressman Earl “Buddy” Carter (R-GA-01), and Congresswoman Debbie Dingell (D-MI-06).

Key provisions of Congressman Tran’s bill were included in the House and Senate passage of government funding package H.R.7148, the Consolidated Appropriations Act, 2026. This bill lowers the cost burden from prescription drugs due to Donald Trump’s inflationary economic policies by reforming pharmacy benefit managers’ (PBMs’) practices and ensuring PBMs are transparent and held accountable for their operations. H.R.7148 was signed into law by the President on Tuesday.

“As the owner of a brick-and-mortar pharmacy in Orange County, I see firsthand the challenges families face from skyrocketing drug prices because of Donald Trump and Congressional Republicans’ cuts to Medicaid and Medicare,” said Congressman Tran. “Families should never have to face the dilemma between skipping out on essential, life-saving medication or putting food on their table and keeping the lights on. I’m committed to working across the aisle to lower prescription drug costs, and that begins with bringing these necessary reforms to the PBM industry to increase transparency and accountability to PBM practices.”

Specifically, the provisions of Tran’s PBM Reform Act that passed in the government funding package include:

Removal of corrupt financial incentives to PBMs that result in price gouging by prohibiting compensation from Medicare being associated with the consumer costs of drugs;
Permit independent auditing and enforcement of PBM operations to increase transparency and accountability; and
Incentivize competition and transparency from PBMs by ensuring that these operations comply with annual reporting requirements, including disclosing information connected to drug costs, pricing, rebates, conflict of interests, and formulary determinations.

PBMs were established as middlemen to lower administrative costs for insurers, verify a patient’s eligibility, issue plan benefits, and aid in the negotiation between pharmacies and healthcare plans. However, today, PBMs have been consolidated into three companies that control 80% of the prescription drug market. The lack of transparency and accountability that has come from this industry consolidation have led to closures of community pharmacies across the country, limited access to vital medications, and higher overall prescription drug costs for families.

Since day one in office, Congressman Tran has been committed to lowering healthcare costs for families in CA-45. In September, Tran signed onto a letter to House and Senate leadership urging the permanent extension of premium tax credits under the Affordable Care Act, and cosponsored H.R.4849, the Protecting Healthcare and Lowering Costs Act, which would codify those tax credits into law. During the largest cut to healthcare in American history, Tran voted against H.R.1, the so-called One Big Beautiful Bill Act, which dismantled access to affordable healthcare for millions of Americans. To reduce the cost of healthcare for parents, Tran co-leads H.R.4641, the Keep Kids Covered Act, with Congresswoman Kathy Castor (D-FL-14).

These legislative initiatives will continue to lower the increasing costs associated with prescription drugs that millions of Americans rely on everyday.