California Signs PBM Law: As Federal PBM Regulation Lags, the States Step Up
With federal PBM reform stalled, states like California are stepping up with laws like SB 41 to boost transparency and lower drug costs.
With federal PBM reform stalled, states like California are stepping up with laws like SB 41 to boost transparency and lower drug costs.
A judge recently blocked an Arkansas law that would have banned PBMs from owning and operating pharmacies in the state. Although the state plans to appeal, one expert says the law likely has no future.
Arkansas became the first state to pass a law banning pharmacy benefit managers from owning pharmacies, aiming to curb their market power and reduce drug costs. But major PBMs like CVS and Express Scripts are suing, claiming the law is unconstitutional.
The Federal Trade Commission has sued CVS Caremark, Express Scripts and Optum Rx, alleging that they engage in "anticompetitive and unfair rebating practices” as it relates to insulin. One legal expert believes the FTC might win this legal battle.
The National Community Pharmacists Association and providers argued that Change Healthcare didn't take the needed precautions against the cyberattack that happened earlier this year.
The Federal Trade Commission recently released an interim report that details how the practices of pharmacy benefit managers negatively impact patients and pharmacies. Some experts hope for legislative action based on the report.