🗞️ Clock Extended: DOL Gives Stakeholders More Time to Shape PBM Transparency Rule

The U.S. Department of Labor's Employee Benefits Security Administration (EBSA) has extended the public comment deadline for its proposed rule, Improving Transparency Into Pharmacy Benefit Manager Fee Disclosure, from March 31 to April 15, 2026. The extension follows the February 3 enactment of the Consolidated Appropriations Act, 2026 (CAA 2026), which amended ERISA to add new provisions governing pharmacy benefit management services — creating a need for stakeholders to address how the proposed rule harmonizes with the updated statute.

Originally published in the Federal Register on January 30, 2026, the proposed rule responds to Executive Order 14273, Lowering Drug Prices by Once Again Putting Americans First, which directed DOL to improve employer health plan transparency into PBM compensation. Pharmacy benefit managers act as intermediaries between drug manufacturers, pharmacies, and health plans, and have acquired significant influence over prescription drug costs at a time when U.S. retail prescription drug spending approached $495 billion in 2024.

The proposed rule would apply specifically to self-insured group health plans covered under ERISA Section 408(b)(2), requiring PBMs — and affiliated brokers and consultants — to provide plan fiduciaries with detailed disclosures of direct and indirect compensation before and during service arrangements. Covered disclosures would include drug manufacturer rebates, spread compensation, copay clawbacks from pharmacies, and compensation expected upon contract termination. Required disclosures must be expressed in dollar amounts rather than formulas or percentages, and must be provided in a machine-readable format upon fiduciary request.

The rule establishes three required disclosure types: (1) a comprehensive initial written disclosure provided before entering, extending, or renewing a service contract; (2) semi-annual updates of compensation actually received during the contract term; and (3) on-demand machine-readable compensation data provided upon fiduciary request, reportable in the aggregate and broken down by covered drug. A safe harbor exists for good-faith disclosure errors that are corrected in a timely manner.

Separately, the proposed rule grants plan fiduciaries audit rights to assess the completeness and accuracy of PBM disclosures. Under the proposed audit provision, costs would be split evenly — 50% each — between the plan and the PBM, while PBMs would be prohibited from restricting the plan's choice of auditor or limiting the scope of audit records.

While the proposed rule currently covers only self-insured plans, EBSA has solicited comments on whether coverage should be expanded to fully insured plans or additional service providers. If finalized as proposed, the rule would take effect 60 days after final publication, with an applicability date for plan years beginning on or after July 1, 2026.

The CAA 2026, signed just days after the proposed rule's publication, introduced a parallel — and partially overlapping — set of PBM reforms applicable to both fully insured and self-funded ERISA plans, with most provisions effective for plan years beginning 30 months from February 3, 2026 (January 1, 2029, for calendar-year plans). Key CAA 2026 provisions include 100% rebate pass-through requirements, compensation disclosures, and mandatory annual audits. The interaction between these statutory requirements and the proposed regulatory framework is the central issue EBSA is asking stakeholders to address during the extended comment period.

A formal notice of the comment period extension will be published in the Federal Register on March 2, 2026.

Key Points

• EBSA extended the public comment deadline for its PBM fee disclosure proposed rule from March 31 to April 15, 2026, to allow stakeholders to address harmonization with new ERISA provisions enacted under CAA 2026.
• The proposed rule was issued pursuant to Executive Order 14273 and, if finalized, would impose new ERISA Section 408(b)(2) disclosure obligations on PBMs serving self-insured group health plans.
• PBMs would be required to disclose direct and indirect compensation — including rebates, spread pricing, and copay clawbacks — through three disclosure types: (1) an initial written disclosure, (2) semi-annual updates of compensation received, and (3) on-demand machine-readable data upon fiduciary request. Audit rights are a separate provision, with costs split 50/50 between the plan and the PBM.
• CAA 2026, enacted February 3, 2026, introduces a separate but related layer of PBM reforms applicable broadly to both self-insured and fully insured plans, with most provisions taking effect January 1, 2029, for calendar-year plans.
• If finalized as proposed, the rule would apply to plan years beginning on or after July 1, 2026; EBSA is also seeking comment on potential expansion to fully insured plans.
• The Federal Register notice formalizing the extended comment deadline is scheduled for March 2, 2026.

Primary Source Author: U.S. Department of Labor, Employee Benefits Security Administration (EBSA)

Primary Source: US Department of Labor Extends Comment Period for Pharmacy Benefit Manager Fee Disclosure Proposed Rule — Release No. 26-360-NAT, February 27, 2026

Primary Source Link: https://www.dol.gov/newsroom/releases/ebsa/ebsa20260227

Supplemental Links

• Federal Register — Improving Transparency Into Pharmacy Benefit Manager Fee Disclosure (Full Proposed Rule)
• EBSA — Proposed Pharmacy Benefit Manager Fee Disclosure Rule Fact Sheet
• Executive Order 14273 — Lowering Drug Prices by Once Again Putting Americans First
• Lockton — A Double Dose of PBM Reform: CAA 2026 and Proposed DOL Rules Compared
• National Law Review — DOL Proposes Sweeping New Disclosure Rules for Pharmacy Benefit Managers
• Miller & Chevalier — EBSA Issues Proposed Rule on PBM Fee Disclosures: Changes Ahead for Plan Sponsors, Fiduciaries, and TPAs
• SBA Office of Advocacy — EBSA Proposed Regulation on Pharmacy Benefit Manager Fee Disclosure
• Withum — DOL Proposes Rule to Increase PBM Fee Transparency