PBMs allege Unconstitutional Restrictions

Little Rock, AR-Two of the nation’s leading pharmacy benefit managers (PBMs), CVS Health and Express Scripts, have initiated separate lawsuits against the state of Arkansas, contesting a recently enacted law. The core of their argument centers on the assertion that the law imposes unconstitutional restrictions on PBMs and their affiliated pharmacies, potentially disrupting patient access to essential medications.

Both CVS Health and Express Scripts filed their complaints in federal court on May 29, alleging violations of the Dormant Commerce Clause and equal protection rights. These legal actions underscore the growing tension between PBMs and state legislatures seeking to regulate the pharmaceutical landscape.

Potential Impact on pharmacy Access and employment

CVS Health warns that the Arkansas law could led to significant disruptions, including the potential closure of 23 pharmacy locations within the state. This closure, according to CVS, could result in the elimination of over 500 jobs. The company also anticipates that affiliated pharmacies under Express Scripts would be negatively impacted.

Express Scripts further contends that the law would impede access to crucial healthcare services, including home-delivered prescriptions, fertility treatments, and complex medications vital for managing conditions such as cancer and spinal muscular dystrophy.

both companies emphasize the disproportionate impact the law could have on rural areas, where pharmacy access is already limited.They argue that restricting PBM-affiliated pharmacies could drive up drug costs for both employers and patients by diminishing competition within the state’s pharmacy market.

Legal Arguments and Concerns

The lawsuits filed by CVS Health and express Scripts hinge on the assertion that the Arkansas law infringes upon constitutional principles. The Dormant Commerce Clause, a key element of their legal challenge, prevents states from enacting laws that unduly burden interstate commerce.

The companies also argue that the law violates equal protection rights, suggesting that it unfairly targets PBM-affiliated pharmacies. These legal arguments highlight the complex interplay between state regulations and federal constitutional law in the healthcare sector.

According to separate may 29 news releases from the PBMs, CVS Health and Express Scripts both argue that the law is unconstitutional and would significantly disrupt patient access to medications.

Express Scripts alleges the law would affect access to home-delivered prescriptions, fertility treatments and complex medications for conditions such as cancer and spinal muscular dystrophy.

CVS said the law could force the closure of 23 of its pharmacy locations, eliminate more than 500 jobs and impact affiliated pharmacies under Express Scripts.

Both companies also said the law will disproportionately affect rural areas, where pharmacy access is already limited, and argue that restricting PBM-affiliated pharmacies could raise drug costs for employers and patients by reducing competition in the state’s pharmacy market.

Arkansas Department of health Response

The Arkansas Department of health has so far declined to comment on the pending litigation. The lack of official response leaves many questions unanswered regarding the state’s rationale for enacting the law and its potential impact on healthcare access and costs.

FAQ: Understanding the Arkansas PBM Lawsuit

What is a PBM?

A Pharmacy Benefit manager (PBM) manages prescription drug benefits for health insurers and employers.

Why are CVS and Express Scripts suing Arkansas?

They claim a new Arkansas law unconstitutionally restricts their operations and harms patient access to medications.

What are the potential consequences of this law?

Possible pharmacy closures, job losses, and increased drug costs, especially in rural areas.

What is the Dormant Commerce Clause?

A legal principle that prevents states from unduly burdening interstate commerce.

Where can I find more facts?

Consult your healthcare provider, insurance company, or legal experts for detailed information.