Calif. Supreme Court Upholds State Law Compelling Pharmacy Benefit Managers To Disclose Their Pricing
The California Supreme Court has upheld a 1984 state law requiring pharmacy benefit managers to disclose their pricing data. In 2002, five independent pharmacies filed a class-action lawsuit to compel WellPoint's PBM subsidiary and other drug benefit service providers to comply with the law. The defendants argued that the forced disclosure was unlawful under the First Amendment. The court ruled that while the state law does implicate free speech, PBM pricing disclosures still can be regulated because such information is factual and related to commerce.
- "Court Upholds Rx Transparency Law" (Brino, Government Health IT, 12/27).