PBMs Challenge Texas Disclosure Laws Over Confidential Data

Pharmacy benefit managers sued Texas to block disclosure of sensitive financial data.

On June 23, 2026, pharmacy benefit managers (PBMs) challenged Texas’s public disclosure requirements, arguing that mandated reporting compromises sensitive, confidential business information. The legal dispute centers on Texas Insurance Code Section 1369.502, which compels PBMs to annually disclose aggregated rebates, fees, and other payments received from pharmaceutical manufacturers, along with the amounts passed on to health plans or retained by PBMs as revenue. This report must be filed by March 1 each year, aiming to enhance transparency in drug pricing and PBM practices.

These disclosure mandates stem from legislative efforts to regulate PBMs amid growing concerns about their influence on drug prices and pharmacy reimbursements. Notably, Senate Bill 1236, signed into law by Governor Greg Abbott in May 2025, emphasizes contract fairness and transparency while prohibiting unfair fees charged by PBMs. As Senator Bryan Hughes remarked, PBMs significantly impact local pharmacies by setting reimbursement rates and controlling pricing for their own pharmacies.

The Texas Prescription Drug Price Disclosure Program, managed by the Department of State Health Services, complements these measures by requiring pharmaceutical manufacturers to report wholesale acquisition costs of FDA-approved drugs sold statewide. Established under House Bill 2536 in 2019, this program advances state-level transparency efforts.

The PBMs’ legal challenge intensifies an ongoing debate about the appropriate balance between public access to pricing information and protecting confidential business data within healthcare regulation. The outcome of this case may influence disclosure policies not only in Texas but potentially across other states considering similar transparency laws affecting PBMs, insurers, and healthcare stakeholders.