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SCOTUS Issues Landmark Ruling in Rutledge v. PCMA

This morning, the Supreme Court of the United States announced its landmark ruling, upholding Arkansas law that regulates pharmacy benefit managers (PBMs). The court's unanimous 8-0 decision rules in favor of community pharmacies, as well as their patients, who have been fighting to regulate PBMs for years.
This morning, the Supreme Court of the United States announced its landmark ruling, upholding Arkansas law that regulates pharmacy benefit managers (PBMs). The court's unanimous 8-0 decision rules in favor of community pharmacies, as well as their patients, who have been fighting to regulate PBMs for years.
 
PBMs determine which pharmacies will be included in a prescription drug plan's network and how much those pharmacies will be paid for their services. PBMs also regulate which drugs are covered under a specific plan and set copays, negotiate rebates with drug manufacturers, and incentivize patients to use mail order pharmacies operated by the PBM. Acting as a middleman, the role of PBMs can go largely unnoticed, leading to hidden costs and higher drug prices.
 
IPA's Executive Vice President & CEO, Kate Gainer, stated, “Iowa pharmacies are no stranger to the fight against PBMs. Our members have engaged in strong grassroots advocacy at the state level for many years. The long road to this victory included the state of Iowa's case, PCMA v. Gerhart, in 2017. IPA is thoughtfully planning our strategy to apply the Supreme Court decision in the state legislative, regulatory and legal arenas.”
 
IPA will present more details on the ruling during Rutledge v. PCMA – Impact on State Legislation, an Insight to Advocacy series webinar on February 19, 2021. Watch future IPA communications for more information on this webinar series, as well as how this ruling impacts our members and prescription drug prices for the public.

 
View responses to today's ruling from national pharmacy organizations and PCMA below.
APhA  |  ASHP  |  NCPA  |  PCMA

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