Federal appeals court rules in favor of PBMs in Oklahoma case

The U.S. Court of Appeals for the 10th Circuit issued a ruling Aug. 15 upending parts of an Oklahoma law that was created to help smaller pharmacies gain customers, The Oklahoman reported Aug. 17.

The ruling comes amid ongoing scrutiny in the pharmacy benefit manager industry. Currently, there are two separate federal investigations into claims that pharmacy benefit managers tend to push patients toward pharmacies they control and own, which can steer business away from smaller pharmacies. 

The law in question, known as the Patient’s Right to Pharmacy Choice Act, was implemented to control some of the pharmacy benefit managers and establish rules around discounts and contracts. However, the court ruled it was unconstitutional. 

The Pharmaceutical Care Management Association had sued Oklahoma over the law initially arguing it would "interfere with nationally uniform plan administration with state stipulations about geographic standards for network drug plans, discounts for cost-sharing and what pharmacies had access to health plan networks," The Oklahoman reported.

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