Landmark Victory for AMAC Action as President Signs PBM Reform Into Law

New law brings transparency, enforcement, and accountability to Medicare Part D drug costs

Published on Feb. 4, 2026

Got story updates? Submit your updates here. ›

After a years-long effort led by AMAC Action and powered by tens of thousands of AMAC members, President Donald Trump has signed meaningful pharmacy benefit manager (PBM) reform into law. The new law restores oversight to the Medicare Part D system, requires the Centers for Medicare & Medicaid Services (CMS) to define and enforce 'reasonable and relevant' contract terms, grants CMS enforcement authority, sheds light on PBM business practices, and prohibits PBM compensation from being tied to a drug's list price.

Why it matters

This victory is a major win for seniors and patients who have long suffered from opaque and abusive PBM practices that have distorted drug costs. The reforms will lower costs, protect access to community pharmacies, and deliver long-overdue savings to millions of Medicare beneficiaries, including countless AMAC members who fought tirelessly to make this happen.

The details

The reforms were enacted as part of legislation funding the Department of Health and Human Services. They strike directly at the PBM practices that have driven up prescription drug costs for years, including requiring CMS to clearly define and enforce 'reasonable and relevant' contract terms in Medicare Part D, granting CMS enforcement authority, shedding light on PBM business practices, and prohibiting PBM compensation from being tied to a drug's list price.

  • Yesterday (February 3, 2026), President Donald Trump signed the PBM reform legislation into law.
  • AMAC Action entered the fight against PBM middlemen in 2018, long before PBM reform became a popular idea in Washington.

The players

AMAC Action

A grassroots advocacy organization that has led the fight for PBM reform, launching campaigns, meeting with lawmakers, and activating tens of thousands of AMAC members to demand change.

President Donald Trump

The President who signed the PBM reform legislation into law, delivering a victory for seniors and patients.

Centers for Medicare & Medicaid Services (CMS)

The federal agency that will now be responsible for defining and enforcing 'reasonable and relevant' contract terms in Medicare Part D, as well as monitoring PBM business practices.

Got photos? Submit your photos here. ›

What they’re saying

“For years, PBMs have exploited a lack of transparency and accountability in Medicare Part D to pad their profits while seniors paid more at the pharmacy counter. By requiring CMS to define and enforce reasonable contract terms, granting real enforcement authority, shining a light on payment and network practices, and delinking PBM compensation from drug list prices, Congress has finally taken meaningful steps to put patients first.”

— Andy Mangione, Senior Vice President, AMAC Action (amac.us)

What’s next

AMAC Action is already turning its attention to PBM business practices in the private insurance market, where many of the same tactics continue to harm patients and families.

The takeaway

This victory is a powerful reminder of what sustained grassroots advocacy can achieve. When AMAC members speak, Washington listens – and seniors across America are better off because of it.