Feds Tell High Court ERISA Doesn't Doom Arkansas PBM Law

Law360 (March 3, 2020, 7:00 PM EST) -- The federal government is urging the U.S. Supreme Court to undo the Eighth Circuit’s ruling that an Arkansas law regulating pharmacy benefit managers' drug reimbursement rates was trumped by ERISA, saying the finding stretched the federal law’s preemption provision too far.

U.S. Solicitor General Noel J. Francisco told the high court in his amicus brief Monday that the Eighth Circuit wrongly found that Arkansas’ Act 900 had an impermissible reference to and connection with Employee Retirement Income Security Act plans, triggering preemption.

The statute didn’t act immediately or exclusively on ERISA plans, and those plans weren’t essential to the operation of...

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