This bill, called the PBM Disclosure Act, requires companies that manage prescription drug benefits for retirement plans to be more transparent about the money they make from their work. Specifically, it targets pharmacy benefit managers (PBMs) and third-party administrators—companies that handle prescription drug coverage for employer retirement plans—and makes sure they clearly disclose both direct payments they receive and hidden fees or kickbacks they get from other sources.

Right now, these companies are supposed to disclose their compensation, but the rules can be confusing about what counts as "indirect" money they're making. This bill clarifies that PBMs and similar service providers must report all the ways they're getting paid, whether it's straightforward fees or less obvious payments from drug manufacturers, insurers, or other business partners. The goal is to give retirement plan sponsors and workers better visibility into potential conflicts of interest—situations where a PBM might be tempted to make decisions based on what makes them the most money rather than what's best for the plan members.

The bill gives the Department of Labor 180 days to write detailed rules explaining exactly what companies need to disclose and how. These new rules will start applying to retirement plans within six months after the rules are finalized. Importantly, Congress says this is just clarifying what was already supposed to happen, not creating brand new requirements.