Legal Center
![litigation](/sites/default/files/styles/mediumlarge_640x480_/public/2023-09/supreme%20court.jpg?itok=e1T6LX6l)
Osterhaus Pharmacy v. CVS Health, Caremark, and Aetna
The National Community Pharmacists Association loudly applauded a class action lawsuit filed against vertically conslidated CVS Health, Caremark, and Aetna that aims to recoup for independent pharmacies millions of dollars in what the lawyers say are wrongful back-end penalties for Medicare Part D prescriptions, otherwise known as pharmacy direct and indirect remuneration fees.
Class Action Lawsuit Update
FTC
Resources
Statements
Executive Update
Press Releases
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NCPA Reiterates Antitrust Concerns to FTC/DOJ Over UnitedHealth-Change Healthcare Deal
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Hoey to FTC: Investigate and Fix Anticompetitive PBM Contracting
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In Latest Work with FTC, NCPA President Urges Comprehensive Review of PBM Consolidation
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During FTC Open Meeting, NCPA Urges Review of Anticompetitive PBM Conduct
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Community Pharmacists Welcome New FTC Chair, Applaud Skeptical View of Vertical Mergers
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NCPA Applauds Senate Bill Requiring FTC Review of PBM Mergers
![Pharmaceutical Care Management Association v. Wehbi](/sites/default/files/styles/mediumlarge_640x480_/public/2021-07/supreme%20court.jpg?itok=JkOifW0u)
North Dakota PBM Litigation
Pharmaceutical Care Management Association v. Wehbi
NCPA is one of nine pharmacy associations that filed a friend of the court (amicus curiae) brief in the Eighth Circuit of the U.S. Court of Appeals defending North Dakota's right to regulate PBMs. Before North Dakota's law went into effect, the Pharmaceutical Care Management Association sued to prevent the state from enforcing it. Originally known as PCMA v. Tufte, then PCMA v. Wilke and now PCMA v. Wehbi, PCMA's lawsuit claimed that two federal laws, the Employee Retirement Income Security Act of 1974 (ERISA) and Medicare Part D, prevent North Dakota from regulating PBMs. The U.S. Court of Appeals for the Eighth Circuit agreed, invalidating North Dakota's PBM law in its entirety. After the Supreme Court win in Rutledge v. PCMA, the Eighth Circuit's decision in the North Dakota case was vacated and sent back to the Eighth Circuit for further consideration.
This case is the first at the federal appellate level to consider the scope of the U.S. Supreme Court's unanimous decision in Rutledge v. PCMA upholding an Arkansas state law regulating the abusive practices of PBMs.
News release:
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Pharmacy Orgs Cheer Eighth Circuit Decision Supporting State PBM Regs
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Pharmacy Orgs Lace Up the Gloves for Another Legal Fight with the PBMs, This Time in N.D.
In The News/Case Resources:
Articles:
![SCOTUS](/sites/default/files/styles/mediumlarge_640x480_/public/2021-05/supreme%20court.jpg?itok=qe3F7CS_)
Arkansas PBM Litigation
Rutledge v. Pharmaceutical Care Management Association (PCMA)
The Supreme Court of the United States issued its landmark ruling in Rutledge v. Pharmaceutical Care Management Association (PCMA), determining whether community pharmacies are protected from abusive payment practices.
The unanimous (8 to 0) decision ruled in favor of the interests of patients and community pharmacies, who have been fighting for years to regulate pharmacy benefit managers (PBMs), the controversial middlemen that manage prescription drug benefits for health insurers, Medicare Part D drug plans, and large employers. With this ruling, states will have greater authority to protect their local businesses and their patients from PBM overreach.
"This is a historic victory for independent pharmacies and their patients. And it confirms the rights of states to enact reasonable regulations in the name of fair competition and public health," said National Community Pharmacists Association CEO B. Douglas Hoey, pharmacist, MBA.
At issue was the extent to which the federal Employee Retirement Income Security Act of 1974 (ERISA), which regulates private employee benefit plans, preempts the states from regulating the amount that PBMs pay pharmacies to dispense prescription drugs that are covered by an employer-sponsored health plan.
There are other important cases working their way through the courts, and there will be lots more legislative activity in Congress and the states on which NCPA will be leading the fight. We need your help, so please consider making a donation to the NCPA Legislative/Legal Defense Fund.
Resources
NCPA Press Releases
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NCPA: NCPA Blasts CVS Caremark Move to Short-Circuit Class Action Case
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NCPA: NCPA Applauds Class Action Lawsuit Alleging Collusion Between Express Scripts and Other PBMs
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NCPA: NCPA Applauds New Class Action Lawsuit Against UnitedHealth, OptumRx to Recoup DIR Fees
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NCPA: Independent Pharmacy Applauds DOJ Move to Block UnitedHealth-Change Healthcare Deal
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NCPA: Pharmacy Orgs Cheer Eighth Circuit Decision Supporting State PBM Regs
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NCPA: Pharmacy Groups React to Landmark Supreme Court Hearing
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NCPA: Community Pharmacists Respond to PCMA’s Amicus Brief on States' Authority to Regulate PBMs
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NCPA: Pharmacy Groups Unite to Fight PBMs in Landmark Supreme Court Case
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NCPA: Community Pharmacy Cheers SCOTUS Decision to Rule on States’ Authority to Regulate PBMs
In the News & Case Resources
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NCPA - Class Action Complaint v. Change Health Care Inc., Optum Inc., and UnitedHealth Group
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NCPA - Rutledge v. PCMA, No. 18-540 (U.S.): One Pager on Unanimous Decision Reversing Eighth Circuit
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C-SPAN - Rutledge, Attorney General of Arkansas v. Pharmaceutical Care Management Association Oral Argument
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NCPA - Rutledge v. PCMA, No. 18-540 (U.S.): One-Pager on Oral Argument
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NCPA - Oct. 5 Facebook Live previewing the oral arguments in Rutledge v. PCMA
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NCPA - Sept. 29 webinar previewing the oral arguments in Rutledge v. PCMA
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NCPA - Analysis of Rutledge v. PCMA
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Talk Business & Politics: U.S. Supreme Court hearing state appeal on pharmacy benefit managers Tuesday
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KAIT TV: SCOTUS to hear Arkansas case regulating PBMs Oct. 6
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Drug Store News: Supreme Court to hear case on states' authority to regulate PBMs
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Pharmacy Times: Supreme Court to rule on States' right to regulate pharmacy benefit managers
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Arkansas Democrat Gazette: Justices get state case on druggist pay rules
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STAT News: Supreme Court will review an Arkansas governing pharmacy benefit managers
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The Motley Fool: Supreme Court to tackle PBM regulations and how much they can charge
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Healthcare Dive: Supreme Court to take on PBM rate regulation
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American Pharmacists Association: Big-time PBM scrutiny on the way as U.S. Supreme Court agrees to hear Arkansas case
Trust LLC
Recover DIR fees from large PBMs. We created an entity doing business as the Team for Recouping Unfair Sham Terms (“Trust LLC”) and retained three highly respected law firms (“Firms”)
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