ALEXANDRIA, Va. – The National Community Pharmacists Association and 41 state pharmacy associations are providing input to the National Association of Insurance Commissioners on educational material it is developing regarding the U.S. Supreme Court’s

December 2020 decision in Rutledge v. PCMA. In this case the Court unanimously found that federal law does not preclude states from enforcing reimbursement and pricing regulations against pharmacy benefit managers, giving states greater authority to protect their local businesses and patients from PBM overreach.

NAIC is analyzing the decision for the benefit of its members, state insurance commissioners, who are tasked with enforcing state PBM regulations like the 2015 Arkansas law that led to the Rutledge decision. It will include the analysis in its ERISA Handbook, the go-to resource for state insurance departments when questions arise regarding a state’s authority to regulate certain commercial health plans. There has been inconsistent enforcement of PBM regulations throughout the country and the hope is that this NAIC resource will bring uniformity to the enforcement of PBM laws.

NCPA and the state associations urged NAIC to ensure the materials make clear that the ruling has implications for all 50 states and U.S. territories, not just Arkansas.

“The Supreme Court decision in Rutledge means that policymakers across the country can advance meaningful PBM regulations at the state level; this must be made as clear as possible to the policymakers passing legislation and the enforcers who would apply it,” said Matthew Magner, NCPA Director of State Government Affairs. “NCPA has appreciated the opportunity to provide NAIC with feedback on these important materials and support the group’s broader PBM reform efforts. We’re eager to see states continue to pass and enforce policies to increase oversight, rein in these massive middlemen, and ensure patients have access to affordable prescription drugs from local pharmacists they know and trust.”