Maine PBM Disclosure Law Recommended by Judge

More light may soon shine on the financial deals made between drugmakers and pharmaceutical benefit managers (PBMs), as Maine moves closer to implementing its PBM disclosure law.

A U.S. magistrate judge in Maine has recommended that the U.S. District Court of Maine lift a March 2004 preliminary injunction blocking the state from implementing its PBM fiduciary law. Enacted in June 2003, Maine's Unfair Prescription Drug Practices Act would require PBMs to disclose pricing information negotiated with drugmakers and pass on any savings to consumers to avoid conflicts of interest.

The "recommended decision" of Magistrate Judge Margaret Kravchuk is nonbinding and requires district court action.

Maine Attorney General Steven Rowe applauded the decision. The law aims to promote transparency in the PBM industry by allowing health plan clients of PBMs to see through the "otherwise secret arrangements that PBMs had with other market players," Rowe said.