S. 3349 — PBM Disclosure Act

This section amends ERISA §408(b)(2)(B)(ii)(I)(bb) (29 U.S.C. 1108(b)(2)(B)(ii)(I)(bb)) to require covered service providers to disclose direct and indirect compensation for pharmacy benefit management services provided by pharmacy benefit managers or other service providers and related services provided by third-party administrators. (As background, ERISA §408(b)(2) exempts reasonable contracts for plan services from prohibited-transaction rules in §406 if compensation is disclosed to plan fiduciaries, thus protecting participants from self-dealing.) The section further (1) directs the Secretary of Labor to promulgate clarifying regulations through notice-and-comment rulemaking within 180 days of enactment, applicable to plan years beginning six months after promulgation; and (2) states the sense of Congress that the amendment clarifies existing disclosure requirements in effect since the application date under §202(e) of the No Surprises Act (P.L. 116-260) rather than imposing new ones.