Labor Department finalizes sweeping PBM disclosure rule
The Department of Labor has finalized a regulation requiring pharmacy benefit managers to disclose comprehensive fee and compensation data to self-funded employer health plans starting in 2027. The rule targets the opaque pricing structures of drug middlemen to enhance transparency across commercial benefit designs. While employer coalitions welcomed the new transparency standards, PBM industry stakeholders criticized the mandate as unwarranted government overreach.
Why it matters: Greater insight into PBM revenue streams and rebate arrangements will give employer plan sponsors critical leverage to negotiate pharmacy contracts and satisfy their federal fiduciary obligations.
Healthcare Dive·