Arkansas bans pharmacy benefit managers from owning pharmacies in state

KUAR | By Andrew DeMillo / The Associated Press, Kim Chandler / The Associated Press

Arkansas Gov. Sarah Huckabee Sanders signed legislation Wednesday prohibiting pharmacy benefit managers from owning or operating pharmacies, becoming the first state to enact such a restriction.

The measure comes as other states are considering restrictions on pharmacy benefit managers, which run prescription drug coverage for big clients that include health insurers and employers that provide coverage.

Supporters of the restrictions have said pharmacy benefit managers are forcing independent pharmacies, especially in rural areas, out of business.

Arkansas bans pharmacy benefit managers from owning pharmacies in state

Attorney General Griffin leads multistate letter asking Congress to prohibit Pharmacy Benefit Managers from owning or operating pharmacies

Griffin: ‘It Is Far Past Time That We Act To Restore The Balance Of Competition And Ensure That PBMs Only Play The Role They Were Always Meant To Play’

LITTLE ROCK – Attorney General Tim Griffin issued the following statement after leading a bipartisan coalition of 39 states and territories in sending a letter to Congress asking it to prohibit pharmacy benefit managers (PBMs) from owning or operating pharmacies:

“PBMs are third-party administrators of prescription drug programs for health plans, and as such they heavily influence drug prices for pharmacies. Over the past few decades, PBMs have increasingly moved into the space of pharmacy ownership and operation. This has allowed them to set certain drug prices for pharmacies they control while setting less competitive prices for independent pharmacies and others outside their scope of influence.

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“While this practice hurts small businesses, it ultimately hurts consumers by driving down competition. The letter that I led alongside the attorneys general of Massachusetts, Missouri, and Vermont urges Congress to take action and protect consumers by enacting a law prohibiting PBMs or their parent companies from owning or operating pharmacies.

“We have stood by for too long and watched PBMs’ influence encroach on consumers and small businesses. It is far past time that we act to restore the balance of competition and ensure that PBMs only play the role they were always meant to play.”

In addition to Griffin, the attorneys general of the following states and territories also signed on to the letter sent by Arkansas: Alaska, American Samoa, Arizona, California, Delaware, District of Columbia, Hawaii, Illinois, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virgin Islands, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

To read the letter, click here.

AG Rutledge Discusses PBM Legal Victory, Reasons for Challenging Presidential Election

by Roby Brock (roby@talkbusiness.net)

Attorney General Leslie Rutledge, R-Ark., had a busy week centered around rulings involving the U.S. Supreme Court.

Arkansas’ top legal officer won a landmark lawsuit before the high court involving the pharmacy benefits manager (PBM) industry, but by week’s end, the Supreme Court dashed the hopes of a Texas lawsuit aimed at overturning the election results in Georgia, Michigan, Pennsylvania and Wisconsin. Rutledge joined a Missouri brief to intervene in the Texas case arguing that Arkansas voters’ ballots would be “diluted” if the results weren’t overturned.

https://talkbusiness.net/2020/12/ag-rutledge-discusses-pbm-legal-victory-reasons-for-challenging-presidential-election/

U.S. Supreme Court To Hear Arkansas Appeal On Pharmacy Benefit Managers Tuesday

Arkansas Solicitor General Nicholas Bronni will defend before the U.S. Supreme Court the constitutionality of a state law regulating pharmacy benefit managers next Tuesday.

Passed in 2015, Act 900 seeks to regulate pharmacy benefit managers (PBMs), which act as middlemen between pharmacists and insurance providers. Their reimbursement rates theoretically incentivize pharmacies to find lower wholesale drug prices.

https://www.ualrpublicradio.org/post/us-supreme-court-hear-arkansas-appeal-pharmacy-benefit-managers-tuesday

U.S. Supreme Court To Hear Arkansas Appeal On Pharmacy Benefit Managers Tuesday

Arkansas Solicitor General Nicholas Bronni will defend before the U.S. Supreme Court the constitutionality of a state law regulating pharmacy benefit managers next Tuesday. Passed in 2015, Act 900 seeks to regulate pharmacy benefit managers (PBMs), which act as middlemen between pharmacists and insurance providers.