Pharm. Care Mgmt. Ass’n v. TufteDate Filed: July 11, 2017
District Court: District of North Dakota – No. 1:17-cv-00141
Appellate Court: 8th Circuit No. 15-3292
Nature of Suit: Pharma Legislation Challenge
Defendant Type: State
Plaintiff Type: Private
Case Info: http://sourceonhealth.wpengine.com/litigation-and-enforcement-highlights-november-2018/, http://sourceonhealth.wpengine.com/litigation-and-enforcement-highlights-september-2018/
Trade association representing pharmacy benefit managers (PBMs) brought action against North Dakota state officials in their official capacities, alleging that Employee Retirement Income Security Act (ERISA) and Medicare Part D preempted North Dakota statutes regulating PBMs and pharmacies. The law in question regulates PBM reimbursement to pharmacies for prescription drugs and how much PBMs profit from such practice. Specifically, it requires disclosures of drug pricing and keeping the reimbursement rate above certain levels.
District Court Judge Daniel L. Hovland ruled in favor of the state and upheld the law, holding that North Dakota’s law does not implicitly include ERISA plans. In addition, the court rejected the argument of Medicare Part D preemption, except the requirement for PBMs to disclose information to plan sponsors, such as the amount of rebates and amount paid to the pharmacy, as it overlaps with the federal disclosure requirement, which requires the same disclosures. Read more on The Source Blog.
The case is on appeal to the 8th Circuit filed 9/7/18.