This bill mandates that pharmacy benefits managers (PBMs) disclose specific information to health benefits plan sponsors to enhance transparency and accountability in the management of pharmacy benefits. It requires PBMs to submit detailed reports to plan sponsors and the relevant department at least every six months. These reports must include comprehensive data on drug claims, including contracted compensation, out-of-pocket spending by beneficiaries, net spending after rebates, and information on therapeutic classes of drugs. Additionally, the reports must provide insights into the financial relationships between PBMs and applicable entities, including any rebates or discounts received.

Furthermore, the bill establishes the right for plan sponsors to audit PBMs annually to ensure compliance with contract terms and the accuracy of reported information. PBMs are required to facilitate these audits by providing necessary records and data. The legislation aims to empower plan sponsors and beneficiaries with clearer insights into drug pricing and the financial dynamics of pharmacy benefit management, ultimately promoting better decision-making regarding healthcare costs and drug accessibility.