On behalf of the 11 largest PBMs in the country, PCMA sued, alleging that Act 900 is preempted by ERISA, and on the basis of a similar Iowa statute, both the district court and the Eighth Circuit held that ERISA preempts Act 900.
#SCOTUS DECISIONS TODAY UPDATE#
To accomplish this result, Act 900 requires PBMs to timely update their MAC lists when drug wholesale prices increase Act 900 also permits Arkansas pharmacies to refuse to sell a drug if the reimbursement rate is lower than its acquisition cost. Act 900 requires PBMs to reimburse Arkansas pharmacies at a price equal to or higher than the pharmacy’s wholesale cost. PBMs, which act as intermediaries between pharmacies and prescription-drug plans, develop and administer maximum allowable cost (MAC) lists. Writing for a unanimous Court (Thomas, J., concurred, and Barrett, J., did not participate), Justice Sotomayor opined that Act 900 has neither an impermissible connection with nor reference to ERISA, and is therefore not preempted. Pharmaceutical Care Management Association (PCMA) concerns whether an Arkansas law, “Act 900,” that regulates the price at which pharmacy benefit managers (PBMs) reimburse pharmacies for the cost of drugs covered by prescription-drug plans is preempted by the federal Employee Retirement Income Security Act of 1974 (ERISA), 88 Stat. The Court has issued four opinions today, one of which has a direct impact upon health care and pension and benefits law.
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