Friday, July 9, 2010

Top Federal Appeals Court Strikes Down D.C.'s Controversial PBM Fiduciary Law

Merritt: ‘A Major Victory for Consumers and Payers Who Want Lower Prescription Drug Costs’

Washington, DC (Vocus/PRWEB ) July 9, 2010 -- In a major victory for consumers and payers, the U.S. Court of Appeals for the District of Columbia today struck down a District law that would have designated pharmacy benefit managers (PBMs) as "fiduciaries" (case number 09-7042). The Court found the key portions of the law, Title II of the DC AccessRx Act of 2004, unconstitutional. A three-judge panel unanimously affirmed a 2009 District Court ruling, finding that, since PBMs engage in claims administration for their clients and are regulated exclusively by Federal ERISA law, states and municipalities cannot impose such requirements.

“This ruling from one of the most respected Federal Appeals Courts in the country allows PBMs to continue to work aggressively to reduce the costs and improve the quality of prescription drug benefits for the 200 million Americans they serve,” said Pharmaceutical Care Management Association (PCMA) President and CEO Mark Merritt.

This ruling from one of the most respected Federal Appeals Courts in the country allows PBMs to continue to work aggressively to reduce the costs and improve the quality of prescription drug benefits for the 200 million Americans they serve.
The D.C. law never went into effect, as a result of an immediate injunction issued by a lower court and subsequent Court rulings (case number 04-1082 RMU). The Court specifically rejected a contrary holding relating to a “nearly identical” Maine statute (First Circuit: 429 F. 3d 294(2005), case number 05-1606) issued by another Appeals Court, stating that “in our view the uniform administrative scheme encouraged by ERISA includes plan administrative functions performed by a third party on behalf of an EBP (employee benefits plan).”

Dozens of states have rejected legislation imposing similar requirements on PBMs upon realizing that such proposals inadvertently raise, not reduce, prescription drug costs.

PCMA represents the nation’s pharmacy benefit managers (PBMs), which improve affordability and quality of care through the use of electronic prescribing (e-prescribing), generic alternatives, mail-service pharmacies, and other innovative tools for 210-plus million Americans.

Follow PCMA on Twitter.

Bookmark -  Del.icio.us | Furl It | Technorati | Ask | MyWeb | Propeller | Live Bookmarks | Newsvine | TailRank | Reddit | Slashdot | Digg | Stumbleupon | Google Bookmarks | Sphere | Blink It | Spurl


See Also:

[Via Legal / Law]

Potenshöjande medel - köp viagra | online pharmacy without prescription

2 comments:

malmanlaw.com here said...

The Court found the key portions of the law. So I hope they could sort it out so that people will not be doubtful about the said report.

Federal Esquire said...

If you are a federal employee injured in work place, yo have a rights to file a case against employer if they provide enough compensation. That time you need an experts guidance and support to claim compensation. If you are looking for an experienced attorney to handle your federal employment case visit:http://federalesquire.com/services/feca/