A recent lawsuit filed by the New York City Transit Authority (NYCTA) raises important considerations for plan sponsors and agencies, such as the NYCTA, that retain the services of Pharmacy Benefits Managers (PBMs). On May 16, 2019, the NYCTA sued Express Scripts in New York state court alleging six counts for breach of contract. The NYCTA alleges that since retaining Express Scripts to manage its prescription drug benefit plan, "the...

Back on October 22, 2018, the state of Arkansas filed a petition for a writ of certiorari with the U.S. Supreme Court, asking them to review the U.S. Court of Appeals for the Eighth Circuit’s decision, specifically asking the Supreme Court to consider "[w]hether the Eighth Circuit erred in holding that Arkansas's statute . . . is preempted by ERISA[.]" Most recently, on April 15, 2019, the Supreme Court invited...

Earlier this year, Attorney General Jeff Sessions announced the creation of a task force to pursue the makers and distributors of prescription opioids and his intention for the Justice Department to play a substantial role in supporting plaintiffs throughout the country in prescription opioids-based lawsuits. In addition to the Justice Department's vocal support of such legal action, numerous lawsuits, including class action lawsuits, have already been filed throughout the United...

Several States throughout the United States have passed laws regarding Maximum Allowable Cost (MAC) pricing and the corresponding appeals process. Some States have enacted legislation that is more favorable to independent pharmacies, than other States. One excellent example of a "pro-pharmacy" MAC-appeal State is Washington. In Washington, PBMs are required to uphold a pharmacy's MAC appeal if: (1) the pharmacy has fewer than 15 retail locations within the State of Washington, and...

Several States throughout the United States have passed laws regarding Maximum Allowable Cost (MAC) pricing and the corresponding appeals process. In addition to enacting favorable MAC laws, some States such as Arkansas have afforded their resident pharmacies additional protections under their business tort laws. Together, these important laws not only expose PBMs to administrative fines and sanctions for non-compliance, but also permit Arkansas pharmacies to pursue direct civil remedies against offending...