(The Center Square) – Gov. Sarah Huckabee Sanders said Tuesday that three pharmacy benefit managers, known as PBMs, could face penalties for paying Arkansas pharmacies below the national average drug acquisition cost.
The accusations against PBM Caremark, Magellan and Express Scripts could yield $1.47 million in penalties, making it the “largest pharmaceutical enforcement in history,” Sanders said.
PBMs manage prescription drug benefits for health care companies and other organizations.
“PBMs have been allowed to skirt the law for too long, today my administration is taking an important step to holding Big Pharma accountable,” Sanders said in a news release. “We must make sure that our most vulnerable populations are protected and that starts with enforcing the law. This action today by the Insurance Department and Commissioner McClain sends a message that Arkansas will protect seniors and rural pharmacies from PBMs taking advantage of them.”
PBMs are a priority of his office, according to Arkansas Insurance Commissioner Alan McClain.
“It’s time for them to make fair and reasonable payments to our pharmacies, as required by the law, and we will enforce all elements of payment and PBM licensure statutes that violate state law, no matter the amount,” McClain said.
PBM Caremark has the most alleged violations with 217 violations, followed by Magellan with 50 and Express Scripts with 19, according to Sanders’ office.