Scott, Courtney, DeSaulnier Urge Labor Department to Improve Transparency from Health Plan Service Providers

Scott, Courtney, DeSaulnier Urge Labor Department to Improve Transparency from Health Plan Service Providers

WASHINGTON - House Education and Workforce Committee Ranking Member Robert C. 'Bobby' Scott (VA-03), Health, Employment, Labor, and Pensions Subcommittee Ranking Member Mark DeSaulnier (CA-10), and Rep. Joe Courtney (CT-02) urged Assistant Secretary Daniel Aronowitz of the Employee Benefits Security Administration (EBSA) to take action to ensure that group health plan service providers, such as pharmacy benefit managers and third-party administrators, disclose both direct and indirect compensation to plan fiduciaries.

The lawmakers highlighted that Congress first established landmark disclosure rules in the Consolidated Appropriations Act, 2021 (CAA 2021), which apply broadly to companies that provide services necessary to the operation of group health plans. Disclosures required under the CAA 2021 are critical for ensuring that plan fiduciaries have the information they need to evaluate fees, identify potential conflicts of interest, and protect workers and employers from unnecessary costs.

However, Congress has since learned that many service providers have failed to comply with this requirement, and the Department of Labor has taken no action to address this issue. Accordingly, the Consolidated Appropriations Act, 2026 (CAA 2026), incorporated language previously included in the Hidden Fee Disclosure Act, authored by Rep. Courtney, which strengthened current law to firmly clarify the broad application of this provision.

"These disclosures are vital to improving health care transparency and lowering costs for both workers and employers," thelawmakers wrote. "Stakeholders may be unaware that these requirements are currently in effect. In light of the importance of this issue to plan fiduciaries and participants, we urge you to promptly issue guidance and, if necessary, take further steps to ensure compliance with this requirement."

In the letter, the lawmakers highlight the importance of the changes enacted in the CAA 2026 and the need for the Department of Labor to take action to ensure that these transparency requirements deliver on their promise.

To read the full letter, click here.

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