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Supreme Court Green Lights Arkansas Law Regulating PBM Pricing Practices | White & Case LLP

To embed, copy and paste the code into your website or blog: On December 10, 2020, the Supreme Court in Rutledge v. Pharmaceutical Care Management Association held that ERISA does not pre-empt an Arkansas law regulating PBM prescription drug payment rates to pharmacies because it merely functions as a cost regulation it does not forc[e] ERISA plans to adopt any particular scheme of substantial coverage or otherwise impermissibly relate to ERISA plans. As a practical matter, the 8-0 ruling, which surprised many in the industry, likely puts an end to any serious ERISA pre-emption challenges to similar laws adopted in more than 35 states.  More importantly, the ruling may give more leeway to states seeking to expand regulation of prescription drug and other health care reimbursement rates, even if those efforts might lead to increases in health plan costs or reductions in plan benefits.

U S Supreme Court Hands Down Loss To Pharmacy Benefit Managers - Litigation, Mediation & Arbitration

On December 10, 2020, the United States Supreme Court issued an opinion in  Rutledge v. Pharmaceutical Care Management Association, Case No. 18-540, announcing for the first time that ERISA does not preclude a state s ability to regulate the relationships between independent pharmacies and pharmacy benefit managers (PBMs). More specifically, the decision held that a state could require PBMs to reimburse independent pharmacies at a fair and reasonable rate that is not less than the rate for large retail pharmacy chains affiliated with the PBMs. The court overturned a decision by the U.S. Court of Appeals for the Eighth Circuit that a 2015 law, known as Arkansas Act 900,

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