The law would have required PBMs not only to reimburse pharmacies at or above their wholesale costs paid for generic drugs, but also keep them from paying their own drugstores more than they pay others. (Photo: Shutterstock)
The Supreme Court will be reviewing a decision by the 8th Circuit Court of Appeals that held that the Employee Retirement Income Security Act restricts states' ability to regulate how pharmacy benefit managers set drug prices charged to pharmacies and by extension to consumers.
According to the Society for Human Resource Management, at least 38 other states have passed similar laws, but the one at the heart of the review and being challenged by the PBM industry is Rutledge v. Pharmaceutical Care Management Association. Arkansas Attorney General Leslie Rutledge is facing down the PBM industry over a state law that regulates PBMs' prescription drug pricing agreements with pharmaceutical makers.
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Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
