8th Circuit hands North Dakota a defeat on PBM law

NCPA August 10, 2020

NCPA is disappointed to hear of the 8th U.S. Circuit Court of Appeals’ recent decision in PCMA v. Tufte. The appellate court ruled that a 2017 North Dakota law regulating pharmacy benefit managers in the state is preempted by the federal Employee Retirement Income Security Act. We believe that the court applied erroneous standards to find that the North Dakota law regulating PBMs is not enforceable in that state. Despite this unfortunate setback, the state has options, including the possibility of seeking a full rehearing from the 8th Circuit to right this wrong and ensure that North Dakota’s legislation regulating PBMs is enforced. NCPA will continue to monitor this case and other cases directly impacting states’ efforts to regulate PBMs, including Rutledge v. PCMA, which is scheduled to be heard before the U.S. Supreme Court on Oct. 6. This setback is small in the scheme of the hard work our members have done to hold PBMs accountable, and NCPA will continue to persist on that front.

NCPA