Teamsters Union Plan Sues Arkansas Over Pharmacy Law (Correct)

A powerful union health plan is challenging Arkansas in court over a law it enacted to regulate pharmacy payments as part of efforts to rein in industry middlemen that oversee prescription drug benefits.

The Central States, Southeast and Southwest Areas Health and Welfare Fund and participant Charles A. Whobrey sued Arkansas Insurance Commissioner Alan McClain April 11, arguing a law requiring health plans to report pharmacy cost data and pay pharmacies a minimum amount violates the Employee Retirement Income Security Act.

The multiemployer benefit plan serves 500,000 people via local chapters of the International Brotherhood of Teamsters.

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