On February 3, 2026, President Trump signed CAA 2026 into law.
Most notably, this law imposes new disclosure obligations on PBMs,
many of which overlap with the disclosure obligations provided in
the Proposed Regulations. While we expect plan
sponsors will generally be pleased with the additional disclosures,
they are also subject to new rules, along with, potentially,
increased fiduciary risk.
Most of the CAA 2026 changes become effective no earlier than 30
months after the effective date of the new law. Accordingly, for a
calendar-year plan, most changes are effective January 1, 2029.
However, CAA 2026 also revises the ERISA prohibited transaction
exemption rules and those changes appear to be effective as of the
date of the CAA 2026's passage. Additionally, we anticipate
that the overall effect of these changes will be felt well before
the delayed effective date, as PBMs, plan sponsors and others may
feel pressure to implement business changes earlier –
especially
