The Hidden Fee Disclosure Act requires health insurance plan service providers—including pharmacy benefit managers, third-party administrators, and other vendors—to disclose all hidden fees and compensation to employers and plan fiduciaries in plain language, breaking down costs by individual service rather than lumping them together. Starting January 1, 2026, these providers must annually reveal specific compensation sources such as drug manufacturer rebates, spread pricing profits, administrative fees, and payments from affiliated entities within 60 days of each plan year. The disclosures must comply with privacy laws and protect individual medical information while detailing operational costs like claims processing and network management. Within one year of enactment, the Department of Labor must issue regulations establishing clear disclosure standards that account for different compensation practices across service providers. The legislation is designed to help employers and employees understand exactly what they are paying for health plan services and reduce opaque fees that have been hidden from plan sponsors.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.