Written Testimony for the ERISA Advisory Council Hearing on PBM Compensation and Fee Disclosure

This document is about the testimony provided by Linda Nilsen, Executive Director of Benefits and Compensation at Princeton University, to the ERISA Advisory Council. Nilsen discusses the challenges faced by Princeton University and other employers in evaluating the true costs of PBM services, including issues around drug exclusions, insufficient notice of formulary changes, and lack of transparency in PBM pricing and revenue streams. Nilsen suggests that standardized reporting of PBM income sources and longer notice periods for formulary changes could help address these challenges.