CATANIA "DELIGHTED" AT COURT'S DECISION TO UPHOLD IMPORTANT PHARMACEUTICAL SAVINGS PROVISION

Washington, D.C. - In an opinion issued today, Judge Richard Urbina of the U.S. District Court for the District of Columbia granted the Attorney General's Office its request to vacate the preliminary injunction and for summary judgment in PHARMACEUTICAL CARE MANAGEMENT ASSOCIATION v. DISTRICT OF COLUMBIA [Civil Action No. 04-1082 (RMU)]. PCMA, a trade association for Pharmacy Benefit Managers, previously sued the District in order to prevent the enforcement of Title II of the AccessRx Act of 2004.

Councilmember David Catania, the author of AccessRx, expressed delight with the Court's decision. "I look forward to educating District consumers as to what this law means and how it will help to save them money at the pharmacy," he said. "It is a very important victory for our residents."

Among other things, AccessRx included provisions to:

• Eliminate conflicts of interest between pharmacists and pharmacy benefit managers by requiring the disclosure of activities such as drug switching;
• Require PBMs to pass negotiated drug rebates through to health plans when requested; and
• Require duty of care between PBMs and health plans (fiduciary duty).

Today's decision marks the second time a federal court has ruled in favor of greater regulation of the PBM industry. Previously, the First Circuit Court upheld a similar law in Maine.

View copy of opinion.