State Financial Officers Backed New PBM Disclosure Rule

Twelve state officials pressed the Labor Department to mandate transparency for pharmacy benefit manager fees.

Updated on Oct. 2, 2026 in Healthcare

Bold flat-color editorial illustration showing a brass balance scale on a stone plinth, representing regulatory financial oversight. — Twelve state financial officers submitted a formal request to the Labor Department on Tuesday urging mandatory transparency for pharmacy benefit manager fee disclosures. AI Illustration. Upload story photo >

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Should the government mandate greater transparency for pharmacy benefit manager fee disclosures?

Twelve state financial officers submitted a formal letter to the Department of Labor supporting a proposed rule for pharmacy benefit manager (PBM) fee disclosure. This initiative aims to address concerns regarding the impact of opaque healthcare spending on state finances and public pension funds.

Why it matters

The push for transparency aims to mitigate rising healthcare costs that affect state budgets and employer-sponsored health plans. By advocating for clearer fee reporting, these officials seek to improve oversight of costs that impact businesses, employees, and taxpayers.

Twelve state financial officers, representing states including Indiana, Kentucky, Louisiana, Montana, Nebraska, North Dakota, South Carolina, Utah, West Virginia, and Wyoming, joined the effort. This group is advocating for the enactment of a proposed Labor Department rule from January 2026.

The players

Department of Labor

A federal executive department responsible for federal labor laws, workplace safety, and the administration of employee benefit plan regulations.

State Financial Officers Foundation

A non-profit organization that represents state treasurers and financial officers, advocating for fiscal policy and transparency in public finance.

The details

The state officers intend to leverage their fiscal oversight positions to pressure the Department of Labor into finalizing transparency requirements for PBMs. These entities often act as intermediaries between drug manufacturers and health plans, and the officers claim that current fee structures impede accurate budgeting. The coalition argues that standardized disclosure is necessary to manage healthcare costs effectively across state-managed pension funds and public-sector health programs.

The Department of Labor introduced the proposed PBM fee disclosure rule in January 2026.
The twelve state financial officers issued their letter of support on October 2, 2026.

Market Landscape

This collective action follows the Department of Labor's January 2026 proposal to overhaul how pharmacy benefit managers report costs. It reflects a growing trend of state-level financial oversight bodies intervening in federal healthcare regulatory policy to influence private market practices.

Operators managing employer-sponsored health benefits should monitor the potential for future regulatory shifts that could alter PBM contract transparency. Businesses should prepare for possible administrative changes that might increase visibility into the fees charged by their healthcare plan vendors.

The takeaway

Transparency in administrative fees remains a critical priority for state fiscal managers. Operators should audit their current PBM agreements to understand the visibility of existing fee structures while awaiting potential federal changes to disclosure standards.