Plain-English summary
Court rules Arkansas law regulating PBM reimbursements not preempted by ERISA
The Supreme Court unanimously reversed the Eighth Circuit, holding that Arkansas’ Act 900—which effectively prevents pharmacy benefit managers (PBMs) from reimbursing pharmacies below their wholesale cost—is not preempted by the federal Employee Retirement Income Security Act (ERISA). The case was remanded for further proceedings consistent with the opinion.
Why this matters
This decision preserves state power to regulate PBMs and to protect pharmacies and patients from reimbursement practices many states view as unfair or harmful. It clarifies limits on ERISA preemption, making it harder for plan-related businesses to use ERISA to block state consumer-protection or market-regulation laws.
Who may feel it
- State governments and state regulators
- Pharmacies, especially community and independent pharmacies
- Pharmacy benefit managers (PBMs) and insurers
- Employers and employee health plans subject to ERISA
- Patients and consumers who use prescription drug benefits