Arkansas AG Calls On Supreme Court to Uphold PBM Reimbursement Legislation

Arkansas Attorney General Leslie Rutledge petitioned the Supreme Court to uphold a state law that requires PBMs to reimburse pharmacies after they dispense drugs to patients at wholesale inventory costs.

At issue is a 2015 state law, Act 900, designed to help reduce drug costs by reining in PBMs. The law targeted maximum allowable cost lists generated by payers or PBMs that define the maximum amount a plan will pay for generic drugs and brand drugs with generic versions available.

The petition comes on the heels of a decision by the Eighth Circuit Court of Appeals, which declared that Act 900 was partially preempted by the Medicaid Part D and Employee Retirement Income Security Act of 1974 (ERISA).