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New federal rule requires drug intermediaries to disclose how they’re paid
The rule requires PBMs to reveal rebates, spread pricing and other compensation, and employers can audit the disclosures to verify charges.
- On Thursday, the Department of Labor finalized a regulation requiring pharmacy benefit managers to disclose detailed pricing, rebates, and compensation to self-insured employer clients.
- Jointly controlling about 80% of U.S. prescriptions, the 'Big Three' PBMs—Cigna's Express Scripts, CVS Health's Caremark, and UnitedHealth's Optum—have long operated with hidden fees that employers struggle to track.
- The rule mandates disclosure of 'spread pricing' and rebates, allowing employers to audit operations; regulators expect these requirements will lower drug costs by $22 billion over a decade.
- Secretary of Labor Keith Sonderling called the rule a 'win' for American workers, though The Pharmaceutical Care Management Association, the largest PBM lobby in the U.S., argued it duplicates reforms in the Consolidated Appropriations Act of 2026.
- Taking effect in July 2027, the rule imposes financial penalties and potential contract invalidation for non-compliance; experts suggest these transparency requirements may encourage PBMs to compete more aggressively.
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biopharmadive.comLabor Department finalizes sweeping PBM disclosure rule
Starting in 2027, the controversial drug middlemen will have to share a broad swath of fee and compensation data with their self-funded employer clients. Employers cheered the rule, while PBMs slammed it as government overreach.
Coverage Details
Total News Sources17
Leaning Left1Leaning Right3Center6Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
C 60%
R 30%
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