Supreme Court Reaffirms State Governments May Enact Cost Regulations Without Triggering ERISA Preemption
By EsqSocial Corporation 05/02/21
In the recent decision Rutledge v. Pharmaceutical Care Management Association, the Supreme Court unanimously affirmed the power of state governments to regulate Prescription Benefit Managers (PBMs) without triggering federal preemption under the Employee Retirement Income Security Act of 1974 (ERISA). In relevant part, the Court’s opinion authorized state governments to enact rate regulations, which “merely increase costs or alter incentives for ERISA plans without forcing plans to adopt any...
By: Troutman Pepper