What plan sponsors must know about gag clauses in contracts

By on December 9, 2025

The “gag clause prohibition” rules prevent group health plans and insurers from entering contracts that restrict their ability to access or share provider-specific cost and quality-of-care information with participants, plan sponsors, or other authorized parties. These clauses are most commonly found lurking in agreements with third-party administrators and pharmacy benefit managers, where they can include provisions that prevent disclosure of lower-priced medication alternatives or impose confidentiality requirements around negotiated rates.

In this PLANSPONSOR article, Alden Bianchi and his co-panelists (Jamie Greenleaf, Julie Selesnick, and Rory Akers) break down the critical compliance requirements plan sponsors face.

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