Governor Sarah Huckabee Sanders and Arkansas Insurance Department Commissioner Alan McClain announced notifications of penalties and hearings against four major pharmaceutical benefit managers (PBMs): Caremark, Magellan, Express Scripts, and MedImpact.
This judgment comes after the Insurance Department issued a bulletin on June 28 directing PBMs not to pay Arkansas pharmacies less than the national average drug acquisition cost (NADAC), which is a violation of state law.
The government is seeking a $5,000 fine for each payment that falls below the NADAC price.
The governor of Vermont said, “Today, my administration is taking an important step toward holding Big Pharma accountable.” Enforcing the law is the first step towards protecting our most vulnerable populations. The Insurance Department and Commissioner McClain’s action today sends a statement that Arkansas will safeguard seniors and rural pharmacies from PBMs that take advantage of them.
PBM Caremark allegedly committed 217 infractions, Magellan 50, and Express Scripts 19 alleged violations. This is Arkansas’s largest pharmaceutical enforcement case in history, with penalties of up to $1.47 million.
Arkansas Insurance Commissioner Alan McClain stated, “The Department is committed to addressing PBM abuses. It’s time for them to make fair and reasonable payments to our pharmacies, as required by law, and we will enforce all payment and PBM licensure statutes that violate state law, regardless of the amount.”
