On Thursday December 10, 2020, the Supreme Court of the United States (SCOTUS) issued a unanimous (8 to 0) decision in the case Rutledge v. PCMA ruling in favor of the Petitioner, Leslie Rutledge, the Attorney General of Arkansas, and against the Pharmaceutical Care Management Association (PCMA). The PCMA is a powerful lobbying group representing the largest pharmacy benefit managers (PBMs) in the country. In Rutledge, the SCOTUS unanimously held that Arkansas’ Act 900 is not preempted by the Employment Retirement Income Security Act of 1974, more commonly known as ERISA.
In 2015, Arkansas enacted Act 900 to address PBM reimbursement in Arkansas that was so low many independent pharmacies and providers were losing money and, in some cases, being forced to close. Due to serious concerns regarding Arkansans’ access to critical pharmacy services, Arkansas enacted Act 900 to address PBMs’ predatory reimbursement practices. PCMA immediately challenged Act 900 arguing that it was preempted by ERISA. After the Eight Circuit held Act 900 preempted by ERISA, the SCOTUS granted Petitioner’s application for a writ of certiorari on January 10, 2020, entertained oral argument on October 6, 2020, and issued its decision today reversing the Eighth Circuit’s ruling and holding that Act 900 was not preempted. In reaching its decision, the SCOTUS noted that “Act 900 amounts to cost regulation that does not bear an impermissible connection with or reference to ERISA”, and therefore it is not preempted.
For more information regarding Rutledge v. PCMA please visit NCPA's official Rutledge v. PCMA page, where they are providing day to day updates on the case.