Pharmaceutical Care Management v. Gerhart, No. 15-3292 (8th Cir. 2017)Annotate this Case
PCMA filed suit seeking a declaration that the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. 1001 et seq., expressly preempts section 510B.8 of the Iowa Code. Iowa Code 510B.8 regulates how pharmacy benefits managers (PBMs) establish generic drug pricing, and requires that certain disclosures on their drug pricing methodology be made to their network pharmacies as well as to Iowa’s insurance commissioner. The court reversed the district court's judgment and remanded for entry of judgment for PCMA on the issue of express preemption, concluding that section 1144(a) of ERISA expressly preempts section 510B.8 because section 510B.8 applies to only those PBMs who administer prescription drug benefits for plans subject to ERISA regulation, and specifically exempts certain ERISA plans from its application.