Hidden Fee Disclosure Act of 2023

HR 4508, the Hidden Fee Disclosure Act of 2023, requires retirement and health plan administrators (including pharmacy benefit managers and third-party administrators) to disclose detailed fee and compensation information annually. It mandates that these administrators provide specific, written reports to plan fiduciaries by January 1st of each year, detailing all direct and indirect fees, rebates, discounts, clawbacks from pharmacies, and the total gross and net spending on drugs or health services. The disclosures must include breakdowns of compensation received from drug manufacturers, pharmacy networks, and other third parties, as well as how fees impact plan participants' costs. These requirements apply to all covered plans and take effect on January 1, 2025, with implementing rules to be issued by the Labor Secretary within a year of enactment.