Teamsters Union Unable to Overturn Arkansas Pharmacy Payment Law

An Arkansas rule regulating health plans’ payments to pharmacies does not violate the Employee Retirement Income Security Act, a federal Illinois court ruled Tuesday.

The Central States, Southeast and Southwest Areas Health and Welfare Fund—a division of the International Brotherhood of Teamsters—and participant Charles A. Whobrey sued Arkansas Insurance Commissioner Alan McClain in April, alleging the state regulation illegally intruded on federal regulation of self-funded health plans under ERISA.

The case notches another win for states in the ongoing battle over pharmacy benefit managers, which oversee prescription drugs for health plans. A series of lawsuits from industry groups, employer groups, ...