Pharmacy Must Arbitrate Claims Against PBM Arising From Provider Agreement Termination

An independent pharmacy that provides compounded drugs to a pharmacy benefits manager’s beneficiaries must arbitrate claims that arose after the PBM sought to terminate the pharmacy’s provider agreement, a federal trial court ruled Jan. 5 (Hopkinton Drug, Inc. v. CaremarkPCS, LLC, 2015 BL 969, D. Mass., 1:14-cv-12794-WGY, 1/5/15).

The U.S. District Court for the District of Massachusetts said the arbitration provision in the provider agreement between plaintiff Hopkinton Drug Inc. and defendants CaremarkPCS LLC and CVS Caremark Corp. is enforceable under Arizona law because it is neither procedurally nor substantively unconscionable. Although a contract of adhesion, offered ...