Pharmacy Benefit Manager (PBM) Transparency | Position Paper

Prescription drugs now represent over 21.5% of commercial insurance premiums, yet pharmacy benefit managers (PBMs) and third-party administrators are not complying with CAA transparency provisions requiring compensation disclosure. This position paper supports the Pharmacy Benefit Manager Reform Act and the Lower Costs, More Transparency Act, which would explicitly apply Section 202 CAA disclosure requirements to PBMs and TPAs. Greater transparency would enable employer plan sponsors to make better-informed decisions about pharmacy benefit design and reduce unnecessary cost.