Dear Colleague,
Next week the Supreme Court of the United States will hear Rutledge v. PCMA. Finally, PBMs will be asked to explain to the Supreme Court why they prefer to live in an ERISA limbo world of unaccountability as a PBM or health plan.
To be clear, while pharmacy issues form the basis of the case , the question of whether federal law preempts state law is truly at issue. The decision will have ramifications that extend well beyond pharmacy. If there is any question about the broad impact of this case, just take a look at which companies submitted amici curiae in support of PCMA. Amicus curiae is Latin for "friend of the court." Not surprisingly, PCMA's friends included the Association of Health Insurance Plans (AHIP) and the Academy of Managed Care Plans(AMCP). But, perhaps less obvious, the U.S. Chamber of Commerce and the Society for Human Resource Management also filed briefs in support of PCMA.
The road to the Supreme Court has been long. The state of Arkansas passed pro-consumer, pro-pharmacy legislation in 2015, which was immediately challenged in court by PCMA, the PBM trade association representing only 16 corporations. NCPA joined the Arkansas Pharmacists Association's efforts to support the state and after several years going through the courts, the 8th U.S. Circuit Court of Appeals heard the case in St. Louis and ruled in favor of PCMA. The state of Arkansas could have quit then, but Attorney General Leslie Rutledge made the gutsy move of appealing the 8th Circuit's ruling to the Supreme Court.
NCPA worked the phones, calling offices of state attorneys general throughout the country and encouraging some of the 32 states that signed on to a letter to the U.S. Solicitor General. That letter, in essence, said the 8th Circuit got the ruling wrong and that the Supreme Court should review and reverse the ruling. The solicitor general agreed and, in January, late on a Friday afternoon, we got the news the Supreme Court had agreed to hear the case.
The Arkansas Pharmacists Association and NCPA continued their work together and, with the support of American Pharmacists Association, the National Alliance of State Pharmacy Associations, and all state pharmacy associations, filed an amicus brief asking that the case be overturned.
Obviously, we don't know how the Supreme Court will rule, but we do know that the ruling will provide clarity and less ambiguity for PBMs to hide behind. And we know the ruling will be another step in making sure PBMs have the necessary oversight to protect consumers and pharmacy small businesses.
Join us at 5 p.m. ET on Monday for a one-hour Facebook Live where APhA Executive VP and CEO Scott Knoer, NASPA Executive VP and CEO Rebecca Snead, and Arkansas Pharmacists Association CEO John Vinson and I will preview the case.
Best,
Douglas Hoey, Pharmacist, MBA
NCPA CEO
P.S. Rutledge will speak during the NCPA Annual Convention, which will be virtual Oct 18-19. It's just one of the amazing programs that will be featured. You and your pharmacy teams can watch wherever you are, and most programs will be "on demand" so you watch them whenever you want (for up to 30 days). Early bird registration ends (and the price goes up) Oct. 15, so register today. Register your pharmacy team too. This is a great opportunity to let them experience the insight of the annual meeting without the expense of a hotel or airfare.
