The HRTech Wire

Improving Transparency Into Pharmacy Benefit Manager Fee Disclosure

The Labor Department has issued a final rule requiring pharmacy benefit managers and affiliated brokerage and consulting providers to disclose their compensation to fiduciaries of large, self-insured ERISA group health plans. The disclosures are tied to the ERISA section 408(b)(2) service-arrangement exemption and let plan fiduciaries judge whether service contracts and fees are reasonable. The rule follows Executive Order 14273 and affects plan sponsors and their service providers.