U.S. Supreme Court Hears Oral Arguments for Rutledge v. PCMA
October 6, 2020
LITTLE ROCK – Arkansas Attorney General Leslie Rutledge released a statement following oral arguments before the U.S. Supreme Court in Rutledge v. Pharmaceutical Care Management Association (PCMA). In this case, Rutledge seeks to protect family pharmacies in Arkansas and to ensure Arkansans’ access to affordable healthcare by defending the State’s power to regulate the abusive payment practices of pharmacy benefit managers (PBMs).
“Arkansans deserve affordable healthcare. By requiring these drug middlemen to be held accountable to pay pharmacies a fair price, we are protecting Arkansans from skyrocketing prescription drug prices and preserving their access to frontline healthcare providers like family pharmacies,” said Attorney General Rutledge. “Our case was one of two landmark healthcare cases before the Supreme Court this term, and it’s time states like Arkansas had the power to protect themselves.”
In the U.S. Supreme Court, Attorney General Rutledge is supported by the U.S. Solicitor General and a bipartisan coalition led by California that includes 44 other states and the District of Columbia.
In 2015, PCMA filed a lawsuit to block enforcement of Act 900, which regulates PBMs, who act as prescription drug middlemen, reimbursing pharmacists for prescription drugs dispensed to insurance beneficiaries. Before Act 900, PBMs often reimbursed pharmacies at less than the pharmacies’ cost to acquire a drug. This practice and other factors caused more than 16% of rural pharmacies to close in recent years. The U.S. District Court for the Eastern District of Arkansas ruled in 2017 that Act 900 was preempted by the federal Employee Retirement Income Security Act, and, in 2018, the Eighth Circuit Court of Appeals affirmed that decision.
The case is Rutledge v. Pharmaceutical Care Management Association, No.18-540.