H.R. 2041: Hidden Fee Disclosure Act of 2025

The Hidden Fee Disclosure Act of 2025 aims to amend the Employee Retirement Income Security Act of 1974 to enhance transparency around fees associated with employer-sponsored health plans. Here are the main components of the bill:

Fee Disclosure Requirements

The bill clarifies and strengthens the fee disclosure requirements for entities providing services to covered health plans, ensuring that:

• Services referred to in the bill will include brokerage services and specify additional administrative services like plan design, claim repricing, and medical management.
• Disclosures on fees must be detailed by individual service providers rather than aggregated.

Pharmacy Benefit Management Services

To improve transparency regarding pharmacy benefit management services, the bill establishes specific disclosure requirements:

• Entities providing these services must disclose all expected compensation from drug manufacturers, including any fees, rebates, and other forms of remuneration.
• Annual disclosures must detail gross and net spending on drugs, costs accrued through pharmacies owned by service providers, and any excess cost-sharing collected from beneficiaries.

Third Party Administration Services

For third-party administration services for group health plans, the bill mandates that:

• Providers disclose various types of compensation and expected recoveries, such as fees or refunds from providers and the total spending on administrative services.
• Annual disclosures should include detailed information about various costs incurred related to the health plan.

Privacy Regulations

The bill requires that covered service providers handle disclosed information in accordance with existing privacy regulations under the Health Insurance Portability and Accountability Act (HIPAA) and related laws. This includes:

• Ensuring only summary health information is shared.
• Limiting the redisclosure of information to relevant parties only.

Implementation Timeline

The Secretary of Labor is tasked with issuing necessary regulations within one year of the bill's enactment to ensure effective implementation of these changes, considering diverse compensation practices of service providers.

Effective Date

The new provisions will not apply to contracts entered into before January 1, 2026, but will affect new contracts and extensions thereafter.

Relevant Companies

• CVS: As a health care provider and pharmacy benefit manager, CVS could face increased scrutiny and must adapt to comply with the new disclosure requirements regarding costs and rebates.
• WBA (Walgreens Boots Alliance): Similar to CVS, Walgreens may need to modify its contractual agreements and practices with health plans to meet the enhanced transparency expectations set forth in the bill.
• UNH (UnitedHealth Group): As a significant health insurer, UnitedHealth may need to adjust its operations and disclosures related to the management of pharmacy benefits and third-party administration services.