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Rutledge vs. PCMA: SCOTUS Greenlights State Regulation of Pharmacy Benefit Manager Drug Reimbursement
On December 10, 2020, the Supreme Court, in a unanimous opinion, held that the Employee Retirement Income Security Act (“ERISA”) does not preempt an Arkansas law regulating pharmacy benefit manager (“PBM”) reimbursement to pharmacies. The Court’s decision provides a potential avenue for states to increase regulation of PBMs and other service providers that help administer ERISA-regulated group health plans, and therefore holds potential significance for, among others, PBMs, pharmacies, pharmaceutical manufacturers, and employers that sponsor ERISA-regulated group health plans.