Rule requires PBMs to disclose their compensation to the sponsors and fiduciaries of self-insured health plans covered by ERISA.

The National Association of Chain Drug Stores (NACDS) released the following statement from NACDS President and CEO Steven C. Anderson on the Department of Labor's new rule issued today requiring pharmacy benefit managers (PBMs) to disclose their compensation to the sponsors and fiduciaries of self-insured health plans covered by ERISA, the federal law governing employer benefit plans:

"NACDS commends the Department of Labor for finalizing this rule - another important aspect of the comprehensive reforms that are needed. Thanks to this action, pharmacy benefit managers will now be required to disclose their compensation to self-insured employer health plans, and plan sponsors will have the right to audit those disclosures every year with an auditor of their choosing. The rule gives employers, who are responsible for ensuring their PBM contracts are reasonable, the information they need to fulfill that legal obligation. Under the rule, PBMs would need to tell employers upfront about expected compensation and give earnings updates every six months.

"Chain pharmacies see this issue from both sides. Our members employ nearly 3 million people and sponsor health plans of their own, while working every day within opaque PBM networks and reimbursement systems. With a clearer view of how PBMs are paid, including rebates, fees, spread pricing, and what they actually reimburse pharmacies, employers can hold PBMs accountable and make sure their health benefit dollars deliver real value for their employees, rather than disappearing into the convoluted compensation structure of vertically integrated plans and PBMs. That means more of every dollar going toward the care and medications employees and their families rely on, and stronger support for the pharmacies that serve them.

"Transparency is only as strong as its enforcement. Vertically integrated plans and PBMs have a long record of resisting federal and state oversight, and NACDS urges the Department of Labor to couple this rule with robust and effective enforcement, so the increased transparency leads to fairer treatment for employers and employees, all pharmacies, and the people they serve."