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Defined Benefit Combo Cash Balance Compliance Consultant Loren D. Stark Company (LDSCO)
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Text of Supreme Court Opinion: ERISA Does Not Preempt Arkansas Statute Regulating PBMs (PDF)
Supreme Court of the United States Dec. 10, 2020 19 pages. "Arkansas' Act 900 regulates the price at which pharmacy benefit managers reimburse pharmacies for the cost of drugs covered by prescription-drug plans.... The Court holds that the Act has neither an impermissible connection with nor reference to ERISA and is therefore not pre-empted.... [N]ot every state law that affects an ERISA plan or causes some disuniformity in plan administration has an impermissible connection with an ERISA plan. That is especially so if a law merely affects costs.... ERISA does not pre-empt state rate regulations that merely increase costs or alter incentives for ERISA plans without forcing plans to adopt any particular scheme of substantive coverage.... Like the New York surcharge law in Travelers, Act 900 is merely a form of cost regulation.... Indeed, Act 900 is less intrusive than the law at issue in Travelers, which created a compelling incentive for plans to buy insurance from the Blues instead of other insurers. Act 900, by contrast, applies equally to all PBMs and pharmacies in Arkansas. As a result, Act 900 does not have an impermissible connection with an ERISA plan." [Rutledge v. Pharmaceutical Care Mgmt. Assoc., Nos. 17-1609 and 17-1629 (8th Cir. Jun. 8, 2018; S. Ct. No. 18-540, oral arg. Oct. 6, 2020)] |
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