Why Is The Department Of Labor Undercutting PBM Reform?

Why is the Department of Labor trying to steal the spotlight on Pharmacy Benefit Management reform with an unnecessary new batch of rules?

Alex Rosado | September 24, 2026

On February 3, 2026, the Trump administration signed the most consequential Pharmacy Benefit Manager (PBM) reform in a generation into law. But now, the Department of Labor (DoL) looks set to steal its thunder -- and not in a good way.

PBMs, which negotiate with pharmaceutical companies to secure lower drug prices, face tough compliance rules thanks to the 2026 Consolidated Appropriations Act (CAA), which expanded transparency reporting requirements for PBMs, gave employers real audit rights over compensation, and established new oversight and audit guidelines. The Department of Health and Human Services (HHS), which regulates healthcare, is in the middle of implementing these innovations.

Why, then, is the Department of Labor trying to steal the spotlight with an unnecessary new batch of very similar rules?

The DoL released a proposed rule requiring PBMs and their partners to reveal hidden fees and payment details to managers of self-insured Employee Retirement Income Security Act (ERISA) group health plans. More transparency, in theory, is great for business. However, since the CAA already carries heavy reporting requirements, the DoL plan is redundant. Its parallel provisions risk undermining the competition and affordability gains the CAA strives to deliver.

The major issue with the DoL’s disclosure rule is the timing. The CAA is a slow, phased approach with rules becoming effective on or after........

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