Health policy
Labor Department requires PBMs to disclose compensation to employers
From July 2027, PBMs must disclose fees, rebates and other compensation to large self-insured employer health plans.
The Labor Department finalized a rule requiring pharmacy benefit managers (PBMs) to disclose compensation information to large self-insured employer health plans. The disclosures include payments from drugmakers, pharmacies and other entities, including rebates and “spread” payments a PBM keeps when a plan pays more for a drug than the PBM reimburses a pharmacy. The rule takes effect in July 2027.
PBMs must provide the information when negotiating or renewing contracts and every six months. Employers can audit the disclosures once a year. The Labor Department estimates the rule will lower drug costs for employers and workers by $22 billion over a decade. The Pharmaceutical Care Management Association criticized the rule as redundant and burdensome, while employer groups said the disclosures will help them oversee PBMs.
