PCMA moves forward in Arkansas 900 lawsuit

A federal court recently denied a motion from the state of Arkansas to dismiss a lawsuit brought by the Pharmaceutical Care Management Association (PCMA) that challenges the legality of Arkansas 900, a newly implemented law that forces consumers and businesses to pay drugstores more for generic prescriptions drugs.

Arkansas is the only state with a law that offers drugstores a “blank check” system. This controversial new law removes the incentive for drugstores to offer lower priced generic drugs and ultimately allows their pharmacies refusal rights when filling consumers' prescriptions.

Each of the PCMA’s allegations toward the state of Arkansas were upheld by the court, thereby allowing the organization to demonstrate their key points in discrediting the constitutionality of the Arkansas 900.

“This favorable ruling means Arkansas must now defend a law that raises health care costs for employers and consumers,” PCMA President and CEO Mark Merritt said.

In their presentation to the court the PCMA highlighted how the law illegitimately allows pharmacies to breach existing contractual agreements while burdening state insurers, businesses and consumers with an increase in health care costs.

Despite its recent passing, the Arkansas law is preempted by two existing federal laws: ERISA and Medicare Part D.