Photo by Claire Anderson on Unsplash

This seems like a good ruling. I’ll post more as I see it:

The U.S. Supreme Court on Thursday ruled 8-0 that states have broad powers to regulate powerful pharmacy middlemen without being preempted by federal law.

The case was brought by the $400-billion-a-year industry, known as “pharmacy benefit managers,” against the state of Arkansas over a 2015 law that set a minimum, market-based rate the middlemen had to reimburse pharmacists for the drugs they dispensed.

More than 70% of the industry is controlled by three corporations: CVS Caremark, Express Scripts and OptumRx. 

Its critics say those companies are often in direct competition with retail pharmacies and they use obscure, anti-competitive reimbursement practices to underpay them. This has resulted in driving many community pharmacists out of business and depriving many small communities of pharmacy access, Arkansas Attorney General Leslie Rutledge argued.

The U.S. Solicitor General and 46 other state attorneys general signed up to help defend Rutledge in the case brought against her by the PBM industry group, the Pharmaceutical Care Management Association.

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