WASHINGTON, D.C., April 16, 2026 – The Partnership for Employer-Sponsored Coverage (P4ESC) today expressed strong support in its comment letter for the Department of Labor’s proposed rule to improve transparency into pharmacy benefit manager (PBM) compensation, calling it an important step toward lowering prescription drug costs for employers and workers.
“This proposal is an important step toward exposing the opaque pricing practices that have driven up prescription drug costs for employers and workers,” said Taylor Hittle, Executive Director of P4ESC. “Employers cannot manage what they cannot see, and too often are charged unreasonable fees or denied the benefit of manufacturer discounts and savings. We appreciate the Administration’s focus on transparency and encourage the Department to finalize a rule that ensures full access to claims data, so employers have complete visibility into how their plans are operating.”
The Department of Labor’s proposed rule, “Improving Transparency Into Pharmacy Benefit Manager Fee Disclosure,” builds upon Section 202, of the Consolidated Appropriations Act, 2021 and would require PBMs to disclose their direct and indirect compensation to plan sponsors under ERISA Section 408(b)(2). The proposal was issued in response to President Trump’s Executive Order to lower drug costs, entitled “Lowering Drug Prices by Once Again Putting Americans First.” The proposed rule comes amid broader bipartisan scrutiny of PBMs, including additional reforms Congress enacted in the Consolidated Appropriations Act, 2026 mandating rebate pass-through to plan sponsors in commercial plans, flat-fee compensation requirements in Medicare, and enhanced transparency and oversight reporting requirements to plan sponsors.
P4ESC is a coalition of employment-based organizations and trade associations representing businesses of all sizes and sectors, and the millions of Americans and their families who rely on employer-sponsored coverage every day. Employer-sponsored coverage has been the backbone of our nation’s health care system for nearly eight decades and is the single largest source of coverage. https://www.p4esc.org.
