Federal Policy
Labor Department Finalizes PBM Fee Disclosure Rule for 2027
The Department of Labor finalized a rule requiring pharmacy benefit managers to disclose detailed fee and compensation data to their self-funded employer plan clients, beginning in 2027. Employer groups praised the rule as a win for transparency into drug pricing and rebate practices, while PBMs criticized it as excessive government intervention. The rule targets ERISA-governed self-funded employer health plans rather than Medicaid managed care directly, though it signals continued federal momentum toward broader PBM transparency requirements across markets.
Why it mattersWhile this rule binds self-funded commercial employer plans under ERISA, it adds to federal pressure on PBM transparency that could inform future Medicaid pharmacy oversight and state PBM reform efforts.