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North Dakota Court Rules against PBMs

Friday, September 7, 2018   (0 Comments)
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From NCPA’s qAM newsletter, Sept. 6: In a significant win for community pharmacy, the U.S. District Court of North Dakota issued a decision on Sept. 5 denying PCMA’s challenge to two North Dakota laws regulating PBMs and their relationship with pharmacies. Defendants in the suit (including the North Dakota Board of Pharmacy, the state attorney general and the state health officer) won on nearly every claim.

The court held that neither ERISA nor Medicare preempts the challenged state laws — except for an isolated provision that mandated certain disclosures to plan sponsors, which the Court held was preempted by Medicare (but not ERISA). Read the court's decision here.

As a result, North Dakota may enforce the laws in their entirety, except for the plan-disclosure provision. PCMA filed an appeal on Sept. 5.

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