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Supreme Court Ruling Addresses ERISA Preemption


Rutledge v. Pharmaceutical Care Management Association. (Justice Amy Coney Barrett did not participate in the case.)
In
Rutledge, the state of Arkansas challenged a ruling by the 8th U.S. Circuit Court of Appeals, which held that ERISA preempts a state law regulating prescription drug reimbursement. In simple terms, the Supreme Court reversed the 8th Circuit’s judgment, finding that the Arkansas law amounts to cost regulation that does not bear an impermissible connection with ERISA.
Discussing this outcome with PLANADIVSER, Benjamin Conley, an attorney and partner at employment law firm Seyfarth Shaw, says there are some serious implications for the health care plan space, which is his main focus. He says national employers will be disappointed with the outcome of the ruling, as they might come to face a patchwork of prescription drug price control laws and regulations across the 50 states. However, he says he understands why Arkansas would enact such a law and why ....

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