Oklahoma Attorney General Gentner Drummond in US Supreme Court over decision concerning pharmacy case

Oklahoma Attorney General Gentner Drummond expressed disappointment after the U.S. Supreme Court declined to hear the state’s appeal in a case involving pharmacy benefit managers .

The decision upholds a 2023 Tenth Circuit Court of Appeals ruling that limits Oklahoma’s ability to regulate the PBM industry.

The case focused on Oklahoma’s 2019 Patient’s Right to Pharmacy Choice Act, which aimed to protect patients and independent pharmacies by ensuring broader access to preferred pharmacies and curbing PBM influence over prescription drug pricing and network participation.

The Tenth Circuit ruled that key provisions of the Act were preempted by federal laws, specifically ERISA and Medicare Part D, which govern employer-sponsored health plans and federal drug coverage programs. The Supreme Court’s refusal to review the case leaves the appellate ruling intact.

“This is not a decision on the merits,” Drummond said. “The Court often allows legal questions to develop across jurisdictions before intervening. We remain hopeful the justices will eventually affirm states’ rights to regulate PBMs.”

Drummond criticized PBMs for their dominant role in the prescription drug market, arguing their practices harm patients and small-town pharmacies.

“PBMs wield enormous power and should not be shielded by federal laws that fail to regulate them effectively,” he stated.

Despite the setback, Drummond vowed to continue advocating for Oklahoma consumers and pharmacies within the court’s imposed limits. He cited the Supreme Court’s 2020 ruling in Rutledge v. PCMA, which upheld Arkansas’s authority to regulate PBMs, as a potential precedent for future challenges.

The Pharmaceutical Care Management Association (PCMA), representing PBMs, praised the Supreme Court’s decision, stating it reinforces federal protections and enables employers to maintain cost-effective benefit plans.

The ruling has raised concerns among pharmacy advocates nationwide, who warn it could weaken state efforts to address PBM abuses. Nearly three dozen states supported

Oklahoma’s appeal, highlighting widespread interest in preserving state regulatory authority over the industry.