Recent developments at the federal legislative and regulatory levels signal a significant shift toward greater transparency requirements in the pharmacy benefit management (PBM) industry.

Seven states have passed Extended Producer Responsibility (EPR) laws related to single-use packaging and plastic food serviceware, with other states considering similar legislation. The intent of these laws is to hold the producers of covered materials financially responsible for their ultimate disposal. Certain states are also requiring the reduction of plastic or non-recyclable plastic used in these materials over time. Legislation is in various stages of implementation, and Oregon is the first state to issue fees to producers. In connection with a legal challenge to Oregon’s EPR program, a court recently granted a preliminary injunction, preventing Oregon from enforcing the law against the plaintiff (an industry group) pending resolution of the case. Meanwhile, CalRecycle continues to struggle with finalizing its proposed regulations implementing California’s EPR law, this time withdrawing its proposed regulations to tinker with provisions related to food and agricultural commodities.

An ERISA litigation trend has emerged that would have been unthinkable a few years ago: The U.S. Department of Labor (DOL) is intervening in court and taking the employer’s side. This trend reflects a deliberate policy shift that matters for every plan sponsor and fiduciary in an environment where “regulation by litigation” has become a default strategy for plaintiffs’ lawyers.