The U.S. Supreme Court has taken up a case reviewing how states regulate pharmacy benefit managers.
At issue is whether the federal Employee Retirement Income Security Act preempts an Arkansas law regulating companies like Express Scripts and CVS Health.
“These inconsistent and often conflicting state policies eliminate flexibility for plan sponsors and create significant administrative inefficiencies. These inefficiencies divert funds from where they should be spent: providing access to the healthcare services on which employees of plans across the country rely,” said PCMA President and CEO J.C. Scott in a prepared statement.
PBMs are often cited as black boxes that use tactics like spread pricing to grow their profits without delivering real benefits to taxpayers or beneficiaries.
Recent studies have found that PBM prices often exceed Medicaid fee-for-service drug prices, which has prompted states to break off their relationships with the PBMs.