Press Releases

Congressman Earl L. "Buddy" Carter (R-Ga.) today applauded the unanimous Supreme Court decision in Rutledge v. Pharmaceutical Care Management Association.

Arkansas law, Act 900, required pharmacy benefit managers (PBMs) to raise reimbursement rates for drugs if they are below the pharmacy’s wholesale acquisition costs. The PBMs argued that federal law supersedes the state law and it was invalid under ERISA. Today, the Supreme Court ruled to uphold the state law and allow states to regulate pharmacy benefit managers. 

"The Supreme Court's decision today is a huge win for patients, lowering prescription drug costs, and the health care system as a whole," said Carter. "Pharmacy benefit managers, who bring absolutely no value to the system, were acting with a carte blanche and ignoring state regulations using ERISA as an excuse. This ruling today is not only important in the Arkansas case, but it also sets a precedent that PBMs can and should be regulated by the states where they operate. This will be a critical tool in our fight to lower prescription drug costs because states will now be able to address and stop the predatory practices of these middle men who work in the shadows."

At least 38 states have passed laws regulating PBM pricing that are similar to the Arkansas statute.