For those of you interested in the litigation surrounding legislation of pharmacy benefit managers, you will want to read this opinion here from a federal district court in Maine issued February 2, 2005, holding that Maine’s Unfair Prescription Drug Practices Act (UPDPA), as amended, 22 M.R.S.A. § 2699 (“UPDPA”) is not preempted by ERISA. The Pharmaceutical Care Management Association (PCMA), the national trade association representing pharmaceutical benefits management companies (PBMs), sued Attorney General Rowe in 2003 alleging that the UPDPA is preempted by ERISA and the Federal Employee Health Benefits Act; that it would effect a regulatory taking of trade secrets, revenues, and contractual rights; that it violates PBMs’ civil rights; and that it is unconstitutional for violations of due process, the Commerce Clause, and freedom of speech. Yesterday, after more than a year of intense litigation between industry lawyers and the Attorney General’s Office, U.S. Magistrate Margaret Kravchuk found in favor of the Attorney General on all claims.
The Attorney General’s press release is here.
PCMA’s press release is here.