Ranking Member Scott Statement on Trump Administration Failure to Improve PBM Transparency

WASHINGTON - House Education and Workforce Committee Ranking Member Robert C. "Bobby" Scott (VA-03) issued the following statement after the Department of Labor finalized its rule, entitled "Improving Transparency into Pharmacy Benefit Manager Fee Disclosure."

"Today's rule fails to meet the moment. The Department of Labor has broad authority under the Employee Retirement Income Security Act to improve transparency and root out conflicts of interest and excessive fees by corporate middlemen in the handling of healthcare benefits and packages. However, despite our recommendations, the Department has chosen to exempt health insurance companies from this rule. It also ignores the secretive business practices of various middlemen that harm people in job-based health plans. It is disappointing that the Department failed to address these critical issues in this final rule.

"Moreover, this rule does nothing to address the broader health care cost crisis created by President Trump and his Republican allies in Congress. Rising costs are squeezing Americans' budgets and the Republicans' 'Big, Ugly Bill' has ripped coverage from millions and made health care less affordable and accessible. The Trump Administration can and should do more to lower costs and expand access to affordable health care coverage. It can start by reversing the cuts to health care in the 'Big, Ugly Bill' and reinstating the enhanced tax credits under the Affordable Care Act.

"Committee Democrats are committed to ensuring workers never have to choose between lifesaving medication and food on the table. We will continue to urge the Administration to lower health care costs and hold corporations accountable for raising costs."

Background:

On April 15, 2026, Ranking Member Scott and Ranking Member Mark DeSaulnier (CA-10), House Subcommittee on Health, Employment, Labor, and Pensions, urged the Department to strengthen the proposed rule. The Members argued that the rule should be expanded to include fully insured plans and to require transparency from other service providers, such as third-party administrators. The Members also insisted that the Department take into consideration privacy protections in the final rule.

In 2025, Representatives Joe Courtney (CT-02) and Erin Houchin (IN-09) reintroduced the Hidden Fee Disclosure Act to shine a light on the opaque prescription drug pricing system and the fees charged by health plan service providers to ensure patients get a fair deal. In 2023, the House passed a version of this bill (320-71) as part of the Lower Cost, More Transparency Act.

In 2022, Ranking Member Scott and Rep. Virginia Foxx (NC-05), sent a letter urging the Department to issue guidance to ensure PBMs and other service providers disclose their compensation and potential conflicts of interest.

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