‘‘(HH) any other services speci-
fied by the Secretary through guid-
ance or rulemaking.’’. 
(4) CLAWBACK DEFINED.—Clause (ii)(I) of sec-
tion 
408(b)(2)(B) 
of 
such 
Act 
(29 
U.S.C. 
1108(b)(2)(B)), as amended by paragraph (3), is 
amended by adding at the end the following: 
‘‘(hh) The term ‘clawback’ means 
amounts collected by a pharmacy benefit 
manager from a pharmacy for copayments 
collected from a participant or beneficiary 
in excess of the contracted rate.’’. 
(c) SPECIFIC DISCLOSURE REQUIREMENTS WITH 
RESPECT TO THIRD PARTY ADMINISTRATION SERVICES 
FOR GROUP HEALTH PLANS.— 
(1) IN
GENERAL.—Clause (iii) of section 
408(b)(2)(B) 
of 
such 
Act 
(29 
U.S.C. 
1108(b)(2)(B)), as amended by subsection (b)(1), is 
amended by adding at the end the following: 
‘‘(VIII) With respect to a contract or ar-
rangement with the covered plan in connection 
with the provision of third party administration 
services for group health plans, as part of the 
description required under subclauses (III) and 
(IV)— 
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‘‘(aa) the amount and form of any re-
bates, discounts, savings fees, refunds, or 
amounts received from providers and facili-
ties, including the amounts that will be re-
tained by the covered service provider as a 
fee; 
‘‘(bb) the amount and form of fees ex-
pected to be received from other service 
providers in relation to the covered plan, 
including the amounts that will be retained 
by the covered service provider as a fee; 
and 
‘‘(cc) the amount and form of ex-
pected recoveries by the covered service 
provider, including the amounts that will 
be retained by the covered service provider 
as a fee (disaggregated by category), as a 
result of— 
‘‘(AA) overpayments; 
‘‘(BB) erroneous payments; 
‘‘(CC) uncashed checks or incom-
plete payments; 
‘‘(DD) billing errors; 
‘‘(EE) subrogation; 
‘‘(FF) fraud; or 
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‘‘(GG) any other reason on behalf 
of the covered plan, .’’. 
(2) ANNUAL DISCLOSURE.—Clause (v) of sec-
tion 
408(b)(2)(B) 
of 
such 
Act 
(29 
U.S.C. 
1108(b)(2)(B)), as amended by subsection (b)(2), is 
amended by adding at the end the following: 
‘‘(IV) A covered service provider, with re-
spect to a contract or arrangement with the 
covered plan in connection with providing third 
party administration services for group health 
plans, shall disclose, on an annual basis not 
later than 60 days after the beginning of the 
current plan year, to a responsible plan fidu-
ciary, in writing, the following with respect to 
the twelve months preceding the current plan 
year: 
‘‘(aa) All direct compensation de-
scribed in subclause (III) of clause (iii). 
‘‘(bb) All indirect compensation de-
scribed in subclause (IV) of clause (iii) re-
ceived by the covered service provider (in-
cluding such compensation described in 
subclause (VIII) of clause (iii)). 
‘‘(cc) The aggregate amount for which 
the covered service provider received indi-
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rect compensation and the estimated 
amount of cost-sharing incurred by plan 
participants and beneficiaries as a result. 
‘‘(dd) The total gross spending by the 
covered plan on all costs and fees arising 
under or paid under the administrative 
services agreement with the third-party ad-
ministrator (not including any amounts de-
scribed in items (aa) through (cc) of clause 
(iii)(VIII). 
‘‘(ee) The total net spending by the 
covered plan on all costs and fees arising 
under or paid under the administrative 
services agreement with the covered service 
provider. 
‘‘(ff) The aggregate fees collected by 
the covered service provider. 
‘‘(gg) Any other information specified 
by the Secretary through regulations or 
guidance that may be necessary for a re-
sponsible plan fiduciary to consider the 
merits of the contract or arrangement with 
the covered service provider and any con-
flicts of interest that may exist.’’. 
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(3) THIRD PARTY ADMINISTRATION SERVICES 
FOR
GROUP
HEALTH
PLANS
DEFINED.—Clause 
(ii)(I) of section 408(b)(2)(B) of such Act (29 
U.S.C. 1108(b)(2)(B)), as amended by subsection 
(b)(3), is amended by adding at the end the fol-
lowing: 
‘‘(ii) The term ‘third party adminis-
tration services for group health plans’ in-
cludes any services provided by a covered 
service provider to a covered plan with re-
spect to the administration of health bene-
fits under the covered plan, including— 
‘‘(AA) the processing, repricing, 
and payment of claims; 
‘‘(BB) 
design, 
creation, 
and 
maintenance of provider networks; 
‘‘(CC) negotiation of discounts 
off gross rates; 
‘‘(DD) benefit and plan design; 
negotiation of payment rates; 
‘‘(EE) recordkeeping; 
‘‘(FF) utilization review; 
‘‘(GG) adjudication of claims; 
‘‘(HH) 
regulatory 
compliance; 
and 
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‘‘(II) any other services set forth 
in an administrative services agree-
ment or similar agreement or specified 
by the Secretary through guidance or 
rulemaking.’’. 
(d) RULE
OF
CONSTRUCTION.—Nothing in the 
amendments made by this section shall be construed to 
imply that a practice in relation to which a covered service 
provider is required to provide information as a result of 
such amendments is permissible under Federal law. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on January 1, 2025. 
SEC. 4. IMPLEMENTATION. 
Not later than 1 year after the date of enactment 
of this Act, the Secretary of Labor shall issue notice and 
comment rulemaking as necessary to implement the provi-
sions of this Act. The Secretary shall ensure that such 
rulemaking— 
(1) accounts for the varied compensation prac-
tices of covered service providers (as defined under 
section 408(b)(2)(B); and 
(2) establishes standards for the disclosure of 
expected compensation by such covered service pro-
viders. 
Æ 
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