Employer FAQs
Clear answers to your employee benefits questions.
Staying Compliant
The Prescription Drug Data Collection (RxDC) report is a federal reporting requirement established under the Consolidated Appropriations Act, 2021.
Its purpose is to help federal agencies better understand prescription drug pricing, healthcare spending, insurance premiums, and the factors contributing to rising healthcare costs.
Despite its name, the report covers more than prescription drugs. It also includes information about medical spending, premiums, and cost-sharing.
Most employer-sponsored group health plans are subject to RxDC reporting, including fully insured, level-funded, and self-funded arrangements.
However, being subject to the requirement doesn't necessarily mean your organization must prepare and submit the report directly.
Fully insured plans: Insurance carriers generally handle much of the reporting, but employers may need to provide information about premiums, enrollment, or employer contributions.
Level-funded and self-funded plans: Reporting may be coordinated among your third-party administrator (TPA), pharmacy benefit manager (PBM), insurance carrier, or another reporting vendor.
The specific responsibilities depend on your plan's funding arrangement and the agreements you have with your service providers.
RxDC reporting is generally due June 1 each year, covering information from the previous calendar year.
For example, information for calendar year 2025 was due June 1, 2026.
Your insurance carrier or reporting vendor may establish an earlier deadline for employers to submit the information needed to complete the filing.
Missing that earlier deadline can mean your carrier won't be able to include your organization's information in its submission.
Failure to meet applicable RxDC reporting requirements can create compliance exposure and potential federal penalties.
The consequences depend on the circumstances, including which entity was responsible for reporting, what information was omitted, and how the applicable requirements are enforced.
Employers shouldn't assume that a missed filing will automatically result in a fine, but they also shouldn't assume there are no consequences.
If you discover that required information wasn't submitted, the appropriate next step is to contact your reporting provider promptly, determine what's missing, and establish how the reporting issue should be corrected.
A few straightforward steps can help prevent reporting problems:
If multiple vendors administer different parts of your benefits program, make sure their reporting responsibilities are coordinated.
At MPOWR, we help employers understand how compliance requirements apply to their benefits programs and identify the steps needed to meet those obligations.
For RxDC reporting, that means helping you determine which providers are responsible for submitting information, identifying any employer data requests, and keeping important deadlines visible.
We also help you recognize when additional guidance from a carrier, administrator, or qualified compliance professional may be necessary.
The goal isn't to make you an expert in federal reporting requirements.
It's to make sure you understand what needs to happen, who's responsible for doing it, and what your organization needs to provide.
Compliance becomes much more manageable when responsibilities are clear and nothing is left to assumption.
Delegating the filing doesn't mean forgetting the deadline.
Your carrier or administrator may handle RxDC reporting, but knowing who's responsible and whether your organization needs to provide information is essential. A little coordination and timely follow-through can help prevent an avoidable compliance problem.
Let's talk
We never lose sight of that.
Thoughtful benefits guidance starts with a conversation. Let's talk about what matters to your business and your people.
