Law360 reports that the Department of Labor’s Employee Benefits Security Administration has proposed a new rule requiring pharmacy benefit managers (PBMs) and affiliated brokers or consultants recommending their services to self-insured ERISA group health plans to disclose detailed fee and compensation information. These disclosures must be updated twice a year, and PBMs must comply with plan audits upon request. Future action is planned for fully insured plans.
The approach aligns with long-standing retirement plan disclosure rules and is intended to support fiduciary monitoring, but a fast implementation timeline – 60 days after a final rule, applying to plan years beginning after July 1 – could strain both PBMs and plan fiduciaries to produce and digest plan-level data. The proposal coincides with congressional action in H.R. 7148 within the fiscal 2026 appropriations package, which imposes broader PBM disclosure obligations and raises questions about how statutory and regulatory requirements will interact, though some employer groups expect alignment.
Lathrop GPM Partner Allie Itami is quoted in the piece, noting the rule is unlikely to be finalized as is. As she read through the proposal, she noted it is ripe for comments, including the specific language of fee disclosures and participant notice timing for formulary changes.
Read the full Law360 article here [SUBSCRIPTION REQUIRED]: 4 Things To Know As DOL Pitches Transparency For PBMs.