Rutledge v. Pharmaceutical Care Management Assn.

The Supreme Court decided a fight over whether federal ERISA law overrides an Arkansas law regulating how pharmacy benefit managers reimburse pharmacies for prescription drugs. Arkansas's law requires updated reimbursement lists and an appeal process when a pharmacy is paid less than its acquisition cost.

The case was argued on Oct. 6, 2020, and decided on Dec. 10, 2020, but the prompt does not provide the vote or opinion lineup.

The answer affects whether states can police payment rules used in prescription drug plans. For example, a local pharmacy that says a PBM paid below its acquisition cost may depend on these state protections.

The Supreme Court has finished this docket action. The practical next step is for lower courts, PBMs, pharmacies, and state regulators to apply the Court's decision.

The dispute was whether ERISA overrides an Arkansas law on PBM reimbursement rates and appeals. That law applies when a pharmacy is paid below its acquisition cost.

Independent pharmacies, PBMs, employers, and patients could all be affected. The case concerns payment rules that shape whether pharmacies can challenge low reimbursements.

The Supreme Court's work in this case is done. The decision now guides the lower courts and the parties going forward.