A federal appeals court in Maine hasshot down efforts by the pharmacy benefitsmanagement (PBM) industry tooverturn legislation in that state requiringPBMs to disclose their businesspractices. The ruling will help to "pavethe way for more states to enact consumerprotections against PBM businesspractices," officials at the NationalCommunity Pharmacists Association(NCPA) said.
The Maine statute, one of a growingnumber of state laws requiring PBMs todisclose payment arrangements thatthey make with pharmaceutical manufacturers,had been challenged asunconstitutional by the PharmaceuticalCare Management Association (PCMA)—an industry group representing PBMs.
In upholding the Maine law, the federalcourt scored "an important victory forconsumers," by making it clear that"states have the right to monitor andregulate the business practices of thesedrug middlemen," NCPA Executive VicePresident Bruce Roberts said.
"The only people who are benefitingfrom the PBMs are the people who runthe PBMs," said Roberts. "It's little wonderthat PCMA and the large PBMs itrepresents don't want to reveal howthey are doing business."
In addition to Maine, PBM reformmeasures have been enacted in NorthDakota, Georgia, Maryland, SouthDakota, and the District of Columbiaand are being considered in a numberof other states.