Labor Dept finalizes PBM disclosure rule to boost transparency for self-insured employers

The U.S. Labor Department has finalized a rule that will require pharmacy benefit managers to disclose detailed fee and compensation information to self-insured employer clients, with the requirement taking effect in July 2027.

The rule mandates that PBMs reveal payments received from drugmakers, pharmacies and other supply-chain entities, including negotiated rebates and "spread" payments that arise when a plan’s reimbursement exceeds what the PBM pays a pharmacy. Disclosures must be provided during contract negotiations or renewals and updated every six months, with employers allowed an annual audit.

Regulators estimate the transparency could lower drug costs for employers and workers by about $22 billion over ten years. Employers have welcomed the move, while PBMs have criticized it as government overreach and warned of severe penalties for non-compliance.