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PBMs as Health Plan Fiduciaries: Increased Transparency and Accountability

This bill aims to enhance protection for group health plan participants by designating Pharmacy Benefit Managers (PBMs) as fiduciaries. This means PBMs will be legally obligated to act in the best interest of the plans and their members, and will also be required to disclose their compensation. The goal is to foster greater transparency and potentially reduce prescription drug costs for citizens.
Key points
Pharmacy Benefit Managers (PBMs) will be treated as fiduciaries, meaning they must act in the best interest of health plan participants, not their own.
PBMs and third-party administrators will be required to disclose all their compensation, both direct and indirect, increasing transparency in drug costs.
PBMs cannot be indemnified or shielded from liability for breaches of their fiduciary duties, strengthening their legal accountability.
The changes will take effect at least 12 months after the bill's enactment, allowing time for adaptation to the new rules.
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Status: Introduced
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Additional Information
Print number: 119_HR_6837
Sponsor: Rep. Auchincloss, Jake [D-MA-4]
Process start date: 2025-12-18
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Employee Retirement Income Security Act of 1974 to ensure that pharmacy benefit managers are considered fiduciaries, and for other purposes.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_6837.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-12-18.

What are the main provisions?

Key points include:

  • Pharmacy Benefit Managers (PBMs) will be treated as fiduciaries, meaning they must act in the best interest of health plan participants, not their own.
  • PBMs and third-party administrators will be required to disclose all their compensation, both direct and indirect, increasing transparency in drug costs.
  • PBMs cannot be indemnified or shielded from liability for breaches of their fiduciary duties, strengthening their legal accountability.
  • The changes will take effect at least 12 months after the bill's enactment, allowing time for adaptation to the new rules.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Auchincloss, Jake [D-MA-4].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and Workforce.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-19.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Health Labor