Arkansas Governor Enforces State Law Against Major Pharmacy Benefit Managers
On August 6, 2024, Arkansas Governor Sarah Huckabee Sanders and Insurance Department Commissioner Alan McClain took significant action against four major pharmacy benefit managers (PBMs), issuing notices of penalties and hearings.
This move marked a substantial effort to regulate the practices of these PBMs, which have long been accused of prioritizing profits over patient safety and contributing to the opioid crisis. The allegations include that these companies prioritized favorable deals with opioid manufacturers over addressing the issue, leading to unjust enrichment and harm to patients.
Arkansas is not new to addressing the opioid epidemic, having received millions in settlements from distributors and manufacturers. This latest enforcement step is part of a broader effort to hold accountable all entities involved in exacerbating the crisis.
In addition to the state’s efforts, Attorney General Tim Griffin has also sued PBMs, alleging that they used data to maximize their financial gains rather than working to mitigate the opioid addiction problem. This multi-faceted approach highlights the state’s commitment to protecting its citizens from harmful practices in the healthcare industry.
- Each of the four major PBMs has been accused of prioritizing profits over public health.
- The state has already received millions in settlements from distributors and manufacturers.
- Arkansas has a history of pushing against PBM practices, having enacted a 2015 law requiring fair reimbursement rates for pharmacies.
- Despite ongoing challenges, the state continues to take strong action to regulate PBMs and address the opioid crisis.
With these enforcement actions, Arkansas is leading the way in addressing the far-reaching consequences of unscrupulous practices by PBMs.
