Break Up Big Medicine Act

This bill prohibits common ownership between certain healthcare entities to eliminate conflicts of interest. It requires companies that own an insurer or pharmacy benefit manager to divest any medical providers or management services organizations they own, and companies that own a prescription drug or medical device wholesaler to also divest such providers or organizations.

Sec. 3, Prohibitions relating to anticompetitive ownership and contracts: It is unlawful for any person to both own or control a provider or management services organization and an insurance company and a pharmacy benefit manager, or to both own or control a provider or management services organization and a prescription drug or medical device wholesaler. Violators must divest one of the two sides within one year of enactment. The Federal Trade Commission and the Department of Justice's Antitrust Division enforce this section, with penalties for missing divestment milestones including monthly escrow of 10% of profits. A trustee may oversee divestiture if the deadline is missed. Civil actions can be brought by the Inspector General of HHS, the Assistant Attorney General, the FTC, or state attorneys general. Individuals alleging damages have a private right of action and may recover treble damages, attorney's fees, and other relief. Courts must order cease and desist, divestment, and disgorgement of revenue from the violation. Disgorged revenue goes to a fund for healthcare needs of the harmed community. Divestments must be reported to the FTC and DOJ, and the agencies review the effect on competition and public interest, with authority to block harmful actions. The FTC must issue rules and quarterly reports to Congress on compliance.