On August 15, 2023, the U.S. Court of Appeals for the Tenth Circuit spoke on a significant development concerning Patient’s Right to Pharmacy Choice Act Title 36 § 6958 et seq of 2019 from Oklahoma. The verdict was laid out in Pharmaceutical Care Management Association v. Glen Mulready, where the official capacity of Glen Mulready as Insurance Commissioner of Oklahoma, Oklahoma Insurance Department was challenged.
The Pharmaceutical Care Management Association (PCMA), an organization representing pharmacy benefit managers (PBMs), instigated the challenge against the Act. This confrontation has resulted in a judgement stating that the Employee Retirement Income Security Act of 1974 (ERISA) preempts the Oklahoma Act.
ERISA is a federal law designed to maintain consistent regulations over private industry pension plans and benefit programs. As per this law, it holds jurisdiction over state laws relating to employee benefits. This ruling thus underlines the supremacy of federal law in such circumstances.
This judgement stands crucial for PBMs, considering such legislation impacts the strategies devised by PBMs to manage, maintain and control prescription drug costs at both the national and state levels. Thus, it beholds significant implications for corporations and legal professionals working within the healthcare sector and dealing with pharmacy benefit management.