Pharmacy Benefit Manager Transparency Act of 2005 - Prohibits any pharmaceutical drug manufacturer from having a controlling interest in an entity that is a pharmacy benefit manager. Allows the Secretary of Health and Human Services to issue civil penalties for violations as necessary.
Prohibits pharmacy benefit managers from making drug interchanges: (1) to a drug with a greater cost; (2) without disclosure to the individual of the savings associated with the interchange; or (3) from a drug with generic equivalents to a drug without generic equivalents, unless the latter is lower in cost than each of the generic equivalents of the drug from which the prescription would be changed.
Requires pharmacy benefit managers to annually disclose all compensation received from drug manufacturers to the Antitrust Division of the Department of Justice (DOJ) and to the client plans of such manager.