(COLUMBUS, Ohio)—Ohio Attorney General Mike DeWine joined a bipartisan coalition of 32 attorneys general in filing an amicus brief in the United States Supreme Court supporting states’ rights to regulate and address the rising cost of prescription drugs to ensure access to affordable prescription drugs.
In Rutledge v. Pharmaceutical Care Management Association, the attorneys general argue that in order to protect the well-being of consumers, states should be free to act as needed, depending on a state's circumstances, to regulate pharmacy benefit managers (PBMs). PBMs act as gate-keepers between pharmacies, drug manufacturers, health insurance plans, and consumers for access to prescription drugs. The brief filed today argues that regulation of PBMs is a matter for state authority in protecting the access to and affordability of prescription drugs.
“Patients deserve access to affordable, quality prescription drugs,” said Attorney General DeWine. “While our office continues to work with outside counsel to aggressively investigate and pursue potential litigation against PBMs, we believe it is important also to support other states in defense of their rights to enact laws regulating and reforming this industry.”
In 2015, Arkansas implemented a law that regulated PBMs by setting standards for generic drug prices. Under the law, PBMs must raise their reimbursement rate for a drug if that rate falls below the pharmacy’s wholesale costs. The law also created an appeals process for pharmacies to challenge these reimbursement rates. The law was challenged by the Pharmaceutical Care Management Association, which argued that the Employee Retirement Income Security Act (ERISA) prevents the State of Arkansas from implementing the law. Arkansas has asked the Supreme Court to hear the case.
The attorneys general argue in today's filing that state laws regulating pharmacy benefit managers are not restricted by federal law. Regulation is critical to the states’ ability to improve the transparency of prescription drug marketplaces and to protect consumers’ access to affordable prescription drugs, especially those in underserved, rural and isolated communities. In addition, the attorneys general assert that the regulation of PBMs promotes healthcare access and affordability, taking away a state’s ability to regulate would create confusion and uncertainty in the market and harm patients.
Attorney General DeWine joined the California Attorney General and attorneys general from Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Minnesota, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, Oklahoma, Oregon, Texas, Utah, Vermont, Virginia, Washington, Wyoming, and the District of Columbia in submitting this amicus brief.
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Media Contacts:
Dan Tierney: 614-466-3840
Breann Almos: 614-466-3840
Documents:
Rutledge v. Pharmaceutical Care Management Association Amicus Brief (pdf)