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

This bill amends the Employee Retirement Income Security Act of 1974 (ERISA) to treat pharmacy benefit managers (PBMs) as fiduciaries for group health plans and requires additional compensation disclosures from PBMs and third-party administrators.

Sec. 1, Establishing fiduciary duties of pharmacy benefit managers: This section deems any person or entity that maintains a prescription drug network or formulary, or that negotiates rebates, processes claims, or performs utilization review for prescription drugs on behalf of a group health plan, to be an ERISA fiduciary.

Sec. 1(b), Required compensation disclosures from pharmacy benefit managers and third party administrators: This section adds requirements for PBMs and third-party administrators to disclose indirect or direct compensation they expect to receive for pharmacy benefit management services and third-party administrative services, including network establishment, claims processing, and rate negotiation.

Sec. 1(c), Clarification of responsible plan fiduciary: This section states that a covered service provider (such as a PBM) generally cannot be the responsible plan fiduciary for required disclosures, except that a PBM that sponsors its own employee health plan may serve as the responsible plan fiduciary for that plan.

Sec. 1(d), Prohibition on indemnification for breaches by a Section 3(21)(C) fiduciary: This section prohibits any person deemed a fiduciary under the new provision from being indemnified or relieved from liability for their duties, and voids any contract provision that violates this prohibition.

Sec. 1(e), Technical amendment: This section makes a minor technical correction to cross-references in ERISA.

Sec. 1(f), Effective date: The amendments apply to plan years beginning at least 12 months after the bill's enactment.