Pharmacy Benefit Manager Law Preempted: DC Circ.

Law360, New York (July 12, 2010, 2:38 PM EDT) -- A District of Columbia law that would have designated pharmacy benefit managers as fiduciaries is preempted by the Employee Retirement Income Security Act and thus is unconstitutional, a federal appeals court has ruled in a victory for plaintiff the Pharmaceutical Care Management Association, which represents PBMs across the country.

The portion of the city's Access Rx Act of 2004 that says a PBM “owes a fiduciary duty to a covered entity" is preempted, according to Friday's ruling by a three-judge panel of the U.S. Court of...
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