Skip to content
Thursday, October 29, 2026 · Today’s edition, 6:30 a.m. ETThu, Oct 29 · 6:30 a.m. editionSign inMy Desk 0EditionsSign in

DOL to issue final PBM fee disclosure rule Thursday

The rule would align with a 2026 law requiring PBMs to pass through 100% of rebates and other manufacturer payments to ERISA plans.

100%Rebate pass-through the 2026 law requires of PBMs

At a glance

  1. The rule, Improving Transparency Into Pharmacy Benefit Manager Fee Disclosure, would require PBMs to disclose all direct and indirect compensation to ERISA plan fiduciaries.
  2. Plan sponsors and advisers would get the PBM's direct and indirect compensation in writing, the disclosure Representative Ryan Mackenzie said employers need to compare competing PBM proposals.
  3. The rule aligns with the Consolidated Appropriations Act of 2026, which requires PBMs to pass through 100% of rebates, fees, alternative discounts and other remuneration received from drug manufacturers and related entities to the ERISA plan.

The Labor Department is expected to release the final version of its pharmacy benefit manager fee disclosure rule Thursday, PLANADVISER reported Wednesday.

The rule, Improving Transparency Into Pharmacy Benefit Manager Fee Disclosure, would require PBMs to disclose all direct and indirect compensation to ERISA plan fiduciaries.

Plan sponsors and advisers would get the PBM's direct and indirect compensation in writing, the disclosure Representative Ryan Mackenzie said employers need to compare competing PBM proposals. For an adviser whose book includes a sponsor's group health plan, that accounting becomes a document in the fiduciary file rather than a figure inferred from a bundled bid that mixes drug spend, rebates and administrative fees.

The rule aligns with the Consolidated Appropriations Act of 2026, which requires PBMs to pass through 100% of rebates, fees, alternative discounts and other remuneration received from drug manufacturers and related entities to the ERISA plan. It is written to match that law's reporting requirements.

At a Wednesday media briefing, Mackenzie, R-Pennsylvania, and healthcare benefits experts endorsed the pending rule, describing it as vital alongside bipartisan congressional action to establish "net effective cost" as the standard for prescription drug pricing across the healthcare market.

"To make informed decisions, employers need a clearer picture of what they're actually paying for prescription drugs," Mackenzie said. "That means accounting for rebates, discounts, fees and other financial arrangements that make it difficult to determine the true cost of their health benefit plans."

Mackenzie and Representative Lucy McBath, D-Georgia, introduced the Net Effective Cost Transparency and Prescription Drug Affordability Act in September. Representatives Jake Auchincloss, D-Massachusetts, Rick Allen, R-Georgia, and Carol Miller, R-West Virginia, co-sponsored. Mackenzie also introduced the PBM Fiduciary Accountability, Integrity and Reform Act in December, which would establish fiduciary responsibilities for PBMs under ERISA. He said the two bills complement the DOL rule and would require PBMs to act as fiduciaries in the best interest of employers and their health plans.

To make informed decisions, employers need a clearer picture of what they're actually paying for prescription drugs.Representative Ryan Mackenzie, R-Pennsylvania

Reported by the Policy & ERISA desk from PLANADVISER and PLANSPONSOR. Published . Corrections

Related

Retirement

Trump signs ESOP valuation bill with good-faith defense for fiduciaries

Fiduciaries who rely in good faith on an independent appraisal under IRS Revenue Ruling 59-60 get a statutory defense; the House passed the Senate text 401-14 in September 2026.

Retirement

52% of DC plan participants would invest in private assets

The share rose from 45% in 2025 and 36% in 2024, and 81% of interested participants say they would save more if offered.

Retirement

EBSA's Aronowitz outlines process safe harbors in proposed Investment Selection Rule

The proposal, prompted by an August 2025 executive order, gives plan fiduciaries 20 examples of a prudent selection process and six non-exhaustive factors.

Retirement

PBGC raises 2027 single-employer guarantee to $8,113.64 a month

The 4.16% increase applies to plans terminating in 2027; multiemployer guarantees, which are not indexed, remain unchanged.

Retirement

Empower survey finds 76% of US adults want step-by-step guidance

Empower's 2,005-adult study also found 54% were unaware of options for retirement savings left behind at a former employer.

Retirement Capital Dailyfrom Private Wealth Daily

Plan menus, in-plan income, rollovers and recordkeepers. Daily at 7:00 a.m. ET.

Free. Every morning. Unsubscribe from any edition in one click.

From other sections