Dear Colleague,
There are three pillars to NCPA's strategy to change the pharmacy payment model. One is NCPA's advocacy efforts focused on fair prescription payment in federal and state programs, the second is marketplace focused on CPESN's efforts for recognition of the value of local pharmacy networks, so employers and health plans pay them appropriately, and the third is a robust legal strategy.
This week, NCPA announced it was joining a class action lawsuit against GoodRx, CVS Caremark, Express Scripts, Inc., MedImpact Healthcare Systems, Inc., and Navitus Health Solutions, LLC for colluding in a price fixing scheme to fix reimbursements to independent pharmacies at the lowest amount possible.
GoodRx has been one of the slipperiest players in the marketplace. Its aggressive advertising campaigns have made it the face of discount cards. But its business practices have put it near the top of pharmacy's Unpopularity List. You can read more here.
This is not the first legal action NCPA has taken on your behalf. In fact, we've been fighting for you in the courts for many years.
Most of you remember our involvement in the landmark US Supreme Court case, Rutledge v PCMA. We were proud to support Arkansas in its defense of a law allowing states to regulate PBMs. In that case, we filed an amicus brief supporting the state's position and shared some of the legal expertise we had gleaned by supporting amici in Iowa and North Dakota. The Court ruled unanimously in Arkansas' favor, and that blasted open the flood gates for similar state legislation all over the country.
The ink wasn't dry on the Rutledge decision when PCMA challenged a similar law in Oklahoma. We joined with other pharmacy groups to file another amicus in that case, called Mulready v PCMA. The lower courts split, so last year Oklahoma petitioned the Supreme Court to break the tie and settle the matter once and for all.
In 2023, NCPA created TRUST LLC, a legal entity that intends to arbitrate or litigate against the PBMs to recover DIR fees for our members. Thousands of pharmacy locations have assigned their claims to the TRUST so far. We have the best lawyers in the country working to get money back for NCPA members that the PBMs took unlawfully. If you want to join TRUST or learn more about it, click here.
NCPA has also worked very closely with many plaintiffs firms who have launched class action lawsuits against PBMs and their insurance company overlords. Those cases also seek to stop illegal activity.
NCPA's aggressive legal advocacy is one of the things that sets us apart. When Congress or the agencies fail to act or move too slowly, or when the PBMs sue to block necessary reforms, NCPA's legal center is a critical line of defense for independent pharmacies. Litigation is very expensive and often moves slowly. However, it's often the only option we have when the Goliaths are actively steamrolling David. Fortunately, many members support the NCPA Legislative and Legal Defense Fund, which allows us to fight on your behalf.
In addition to the costs, filing a lawsuit haphazardly can be dangerous because of the legal precedent it sets, so NCPA is judicious with its lawsuits. We will aggressively fight back against anyone messing with our members.
Best,
