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Latest news and updates about the Medicare and pharmacy industries.

July 24: Supreme Court PBM Case Moves to October

Posted on in Industry Updates by Amplicare Team

Plus, the latest pharmacy and healthcare news to know this week.

The Story

The Supreme Court will hear oral arguments in the Rutledge v. Pharmaceutical Care Management Association (PCMA) case on October 6. The case has been delayed due to the ongoing pandemic. 

Why It Matters

The origins of the case before the Supreme Court date back to 2015 when Arkansas passed Act 900. The law would require PBMs to reimburse pharmacies for generic drugs at or above the wholesale cost, allow pharmacies to appeal reimbursements, and prevent PBMs from giving higher reimbursements to affiliated pharmacies. PCMA, the professional organization representing PBMs, first challenged Act 900 in federal court in 2017 and it has since been in and out of litigation. Read more about the history of the case

According to Arkansas Attorney General Leslie Rutledge, the outcome of the PBM case will help provide clarity on how states should implement regulations on PBMs. Pharmacy groups including APhA, NCPA, the Arkansas Pharmacists Association, and others filed an amicus curiae brief in support of Rutledge and the rights of states to regulate PBMs. After oral arguments are heard in October, pharmacies may have to wait several months before a final ruling is made.

Other healthcare news to know:

1. One in eight parents in the U.S. are hesitant about the flu vaccine and other routine childhood vaccines, according to a new study. Drug Topics.

2. The FDA has recalled at least 75 hand sanitizers due to toxic levels of wood alcohol. CNBC.

3. The number of confirmed coronavirus cases in the U.S. has passed 4 million. Washington Post.

4. Uber has launched a contact tracing service to help with COVID-19 spread. Reuters.

5. In a new deal with HHS, Pfizer will produce and deliver 100 million doses of a COVID-19 vaccine nationwide once it is approved. Drug Store News.

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