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OptumRx and other subsidiaries of UnitedHealth are suing Doug Ommen, the Iowa insurance commissioner, to block enforcement of Iowa's new pharmacy benefit manager law.
The UnitedHealth subsidiaries have told the U.S. District Court for the Southern District of Iowa that provisions in the law, which was signed June 11, violate the provision of the federal Employee Retirement Income Security Act that prohibits states from trying to regulate large, multistate health plans.
Another provision in the law, which prohibits PBMs from telling patients whether using some pharmacies could help save them money, violates the PBMs' freedom of speech, according to a complaint filed Thursday.
The Iowa Association of Business and Industry has also sued over the PBM law, and the Iowa district court granted the association an injunction in August.
An appeal of the August ruling is pending at the 8th U.S. Circuit Court of Appeals.
PBMs and health plans need an injunction of their own, because it's not clear whether the Iowa commissioner can enforce the state's PBM law, and the Iowa law "directly and substantially harms plaintiffs by subjecting them to unlawful and unconstitutional regulations," the United Health subsidiaries said.
Representatives for the parties were not immediately available to comment on the case.
What it means: Health insurers, pharmacies and state officials are also involved in legal battles in Arkansas.
Differences between how the federal courts handle the Arkansas PBM law and the Iowa PBM law could eventually lead to a new battle over state efforts to regulate PBMs at the U.S. Supreme Court.
The backdrop: The ERISA Industry Committee has argued that there are at least two issues involved.
One is whether the big PBMs need more oversight, and another is whether any additional PBM oversight should come from Washington or state capitals.
Some employers support their states' efforts to add PBM regulations.
Traditionally, ERIC and other benefits groups have argued that letting states adopt many well-meaning but different laws will increase employers' benefits costs and hurt employers' ability to offer benefits.
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