Trump Administration Introduces Transparency Regulation for Pharmacy Benefit Managers

In a significant move, the Trump administration announced a new regulation that will mandate massive companies responsible for managing prescriptions for millions of Americans to reveal detailed financial information regarding their transactions with drugmakers. This regulation, unveiled by the Labor Department, targets pharmacy benefit managers who negotiate prescription drug benefits for employees and their healthcare plans.

Under the regulation, these pharmacy benefit managers must disclose both the costs they pay for pharmaceuticals and the earnings they receive from pharmaceutical companies. This policy is part of President Trump’s broader initiative to reduce drug costs and increase transparency within the healthcare system.

Labor Secretary Keith Sonderling stated, “The Trump administration is ensuring no one in the healthcare industry can escape the competition that comes from complete price transparency.” He emphasized that the rule will empower employers to negotiate better deals and ultimately lower drug prices for the more than 72 million Americans on self-insured group healthcare plans.

This regulation emerges as a response to criticisms from advocates and legislators who argue that pharmacy benefit managers exploit a lack of transparency to steer patients towards more expensive medications. Although the regulation has faced resistance from major pharmacy benefit managers, it represents a significant step toward accountability in the industry.

Powerful entities like Express Scripts from The Cigna Group, CVS’s Caremark, and UnitedHealth Group’s Optum Rx collectively control approximately 80 percent of prescription drug claims in the United States, according to a 2026 report by Groundwork Collaborative, a progressive economic policy think tank. The rule, set to take effect for healthcare plans starting in July, promises to transform the landscape of prescription drug pricing.