To amend the Employee Retirement Income Security Act of 1974 to ensure that pharmacy benefit managers are considered fiduciaries, and for other purposes.

Key Provisions

• Deems pharmacy benefit managers (PBMs) as fiduciaries under ERISA for many of their services, meaning they would have a legal duty to act in the best interest of health plans.
• Requires PBMs and other administrators to disclose all direct and indirect payments they expect to receive for services provided to health plans.
• Blocks PBMs who are fiduciaries from being protected from liability if they fail to meet their new responsibilities.
• Clarifies that a service provider, like a PBM, generally cannot be the main fiduciary responsible for disclosures, except when a PBM sponsors a plan for its own employees.
• Takes effect for health plan years starting at least 12 months after the bill becomes law.