Arkansas officials have taken action against four nationwide pharmacy benefit managers (PBMs) for underpaying Arkansas pharmacies for prescription drugs. The PBMs are ordered to pay a total of $1.47 million in fines for violating a 2015 law that required them to pay pharmacies at least the national average for drug acquisition costs. This comes after a long-standing frustration among local pharmacies with PBMs, which serve as middlemen in the prescription drug market.
Arkansas Insurance Department Commissioner Alan McClain is seeking fines of $5,000 for each violation by the PBMs, which include CVS Caremark, Magellan, Express Scripts, and MedImpact. Governor Sarah Huckabee Sanders emphasized the importance of enforcing the law to protect vulnerable populations and hold Big Pharma accountable.
The PBMs, including Express Scripts and Caremark, have faced legal challenges in the state, with allegations of using data to maximize financial gain instead of addressing the opioid addiction epidemic. The state has also sued drug manufacturers for inflating the cost of insulin in collaboration with PBMs.
Despite state regulations, independent pharmacies continue to face challenges with PBMs. The Arkansas Pharmacists Association and Insurance Department have called for further regulation of PBMs, citing complaints of illegally low payments to pharmacies. The ongoing efforts underscore the need for accountability and transparency in the prescription drug market.
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