Drug Benefit Managers Must Act as Fiduciaries for Health Plan Participants.
This law mandates that Pharmacy Benefit Managers (PBMs) must act as fiduciaries, meaning they must legally prioritize the financial interests of employees covered by group health plans. PBMs, who manage prescription drug benefits, are now required to disclose all forms of compensation and rebates they receive. This change aims to eliminate conflicts of interest, increase transparency, and potentially reduce prescription drug costs for millions of Americans.
Key points
PBMs are legally designated as fiduciaries under ERISA, compelling them to act solely in the best interest of health plan participants.
PBMs must fully disclose all direct and indirect compensation, rebates, fees, and discounts received related to prescription drug management.
PBMs cannot be indemnified or relieved from liability if they breach their new fiduciary duties, ensuring greater accountability for drug pricing and management.
Status:
Introduced
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