Connect with us

State News

Attorney General Miyares joins bipartisan coalition to regulate abusive practices of pharmacy benefit managers

Published

on

On October 18, 2022, Attorney General Jason Miyares joined a bipartisan coalition of 34 attorneys general from across the country in an amicus brief in the U.S. Court of Appeals for the Tenth Circuit supporting Oklahoma’s laws regulating pharmacy benefit managers’ abusive behavior (PBMs).

Oklahoma’s laws regulating PBMs are similar to Virginia’s and are being challenged in the latest of a string of lawsuits by the PBM industry’s national lobbying association, the Pharmaceutical Care Management Association (PCMA).

Attorney General Miyares and the bipartisan coalition seek to protect Virginia consumers by assuring that Virginia and all states can regulate PBMs.

As Attorney General Miyares and the coalition write in their amicus brief to the Tenth Circuit, “states have an interest in preserving states’ authority to regulate companies doing business in their states, protecting their residents’ access to healthcare, and curbing abusive business practices. To advance these interests, nearly all states regulate pharmacy benefit managers.” PCMA’s broad approach to federal preemption, however, would “severely impede states’ abilities to protect their residents and potentially upend licensing and regulatory structures in nearly every state.”

“Virginians’ healthcare costs continue to rise, and PBMs are partially to blame. Virginia has enacted laws to protect consumers from abusive PBM practices, including those I supported in the General Assembly. Now, as your Attorney General, protecting consumers is one of my most important jobs, and I will continue to fight for these laws and the consumers they protect,” said Attorney General Miyares.

PBMs are intermediaries between prescription-drug plans, pharmacies, and drug manufacturers in the prescription pharmaceutical industry. PBMs profit from fees charged to market participants and by reimbursing pharmacies less than the PBM is paid by plans for dispensing medications. PBMs have imposed self-serving protections that reduce competition, limit prescription medication access, and impose various confidentiality requirements. For example, PBMs have tried to force consumers to use PBM-affiliated pharmacies at the expense of independent, often more convenient, pharmacies by giving consumers preferential rates if they use a PBM-affiliated pharmacy or by denying coverage at non-affiliated pharmacies altogether.

These business practices have harmed consumers, pharmacies, and states. Rural and independent pharmacies have especially struggled to survive when PBMs impose financially unsustainable conditions. The PBM industry, however, reaps hundreds of billions of dollars annually.

PBMs have been largely unregulated for decades. States like Virginia, Oklahoma, and others have stepped up and paved the way for PBM regulation to protect consumers and pharmacies.

In the absence of meaningful federal regulations, Oklahoma — like many states — passed laws regulating PBM-pharmacy interactions. The Oklahoma laws at issue address two key components of PBM business practices: ensuring pharmacy-network adequacy and curtailing PBM’s self-dealing. More specifically, Oklahoma requires PBM’s pharmacy networks to have sufficient geographic coverage, allow all in-network pharmacies to receive preferred-participation status if they meet the PBM’s criteria for that status, prohibit network exclusion solely because a pharmacy employee may be on probationary status, and prohibit PBMs from incentivizing the use of particular (typically PBM-affiliated) in-network pharmacies.

In Mulready, PCMA sued various Oklahoma officials, alleging that federal law (ERISA and Medicare Part D) preempts Oklahoma’s laws. The district court held that federal law did not preempt the state laws. PCMA appealed to the Tenth Circuit, which will decide whether ERISA or Medicare preempts Oklahoma’s laws.

Attorney General Miyares was joined by the attorneys general of Arizona, Arkansas, California, Colorado, Connecticut, Delaware, the District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, South Dakota, Texas, Utah, and Washington.

Read the brief HERE.

 

Front Royal, VA
43°
Clear
6:51 am5:02 pm EST
Feels like: 43°F
Wind: 0mph E
Humidity: 90%
Pressure: 30.01"Hg
UV index: 0
ThuFriSat
59°F / 41°F
52°F / 36°F
48°F / 36°F
Local News7 hours ago

Blue Ridge Wildlife Center Patient of the Week: Canada Goose

arrest logo
Arrest Logs7 hours ago

POLICE: 7 Day FRPD Arrest Report 11/9/2026

Community Events7 hours ago

This Week’s Showtimes at Royal Cinemas as of November 12th

Local Government10 hours ago

Town Council Arrives at Consensus on Joint Tourism Agreement with the County

Local News11 hours ago

From Steel to Sharp: Front Royal Craftsman Turns Handmade Knives Into Works of Art

Food12 hours ago

Jest a Moment: Great Unheralded Moments in Food History

State News14 hours ago

Virginia Elected a Woman Governor. The State Constitution Still Says ‘He’

State News14 hours ago

JLARC: Data Center Tax Break Accounts for 60% of Virginia’s Incentive Spending

Opinion15 hours ago

Commentary: The Blue Tsunami Has a Message for Virginia Democrats on Data Centers and Campaign Finance

National News15 hours ago

Trump Open to Immigration Deal, Calls Crackdown ‘Too Tough,’ Despite Miller Promotion

Interesting Things to Know20 hours ago

That Flashing Orange Hand Doesn’t Mean Run: What Pedestrian Signals Really Mean

Food20 hours ago

The Secret to Perfect Snickerdoodles?

Local News1 day ago

Nationwide Emergency Alert Test Set for November 17: What to Expect on Your TV and Radio

Obituaries1 day ago

Kathy McDonald Butler (1973 – 2026)

Health1 day ago

UVA Researchers Develop Powerful AI Tool to Help Unlock Causes of Disease and Speed New Treatments

Community Events1 day ago

Samuels Public Library Holiday Open House Brings Santa, Mini Alpaca, and New Youth Gift Market December 12

Local News1 day ago

Would You Drive With Your Eyes Closed? Virginia DMV Launches Powerful New Distracted Driving Campaign

Community Events2 days ago

Mead Mile Takes a Turn Towards Youth-Oriented Community Nonprofit ‘Reaching Out Now’ for 2026 Event Fundraising

State News2 days ago

Virginia Could Lose Representation, Funding Under Proposed Census Rule Change, AG Jones, Housing Orgs Say

State News2 days ago

Virginia Localities Rethink Use of License Plate Readers Amid Privacy Concerns, Report States

Opinion2 days ago

Commentary: After the Blue Tsunami, Democrats in Virginia, Nationwide Should Avoid Misinterpreting Their Mandate

Community Events2 days ago

Cars Changing Lives Car Show Breaks Attendance Record as Organization Nears 100th Vehicle Giveaway

National News2 days ago

GOP Congress Faces Funding Deadline, Farm Bill, Lengthy To-Do List in Year-End Session

Health2 days ago

The Childhood Illness That Looks Like Slapped Cheeks: What Parents Should Know About Fifth Disease

Interesting Things to Know2 days ago

Unmarked Police Car Pulling You Over? Here’s What Drivers Should Know