Supreme Court Ruling on Drug Pricing Complicates Multistate Employer Plans

On Dec. 10, the U.S. Supreme Court issued a unanimous ruling that allows individual states to enact laws regulating pharmacy benefit managers’ (PBMs’) ability to set prices for prescription drugs paid for by employee health plans. The court found that these laws, with certain limits, do not violate the

Employee Retirement Income Security Act (ERISA).The court ruled that ERISA does not stop states from regulating the pricing set by PBMs, which administer drug benefits programs in employee health

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