Attorney General Kwame Raoul, joining forces with a diverse alliance of 32 state attorneys general, has made a strategic move to sway the U.S. Supreme Court into deliberating on a contentious matter—whether states possess the legal prerogative to regulate pharmacy benefit managers (PBMs). In an amicus brief, Raoul, alongside the coalition, is urging the court to examine a pivotal case prompted by the Pharmaceutical Care Management Association (PCMA), which may critically impact pharmaceutical pricing and consumer protection at a state level, according to a release from the Illinois Attorney General's office.

At the heart of the legal struggle is a U.S. Court of Appeals for the 10th Circuit decision that asserted federal law trumps Oklahoma state regulations concerning PBMs, seeing as the PCMA has launched a succession of legal challenges intended to thwart states' regulatory endeavors; Raoul and his bipartisan colleagues have taken a stand against this perspective, spotlighting the critical necessity for states to serve as custodians of their residents' well-being and market fairness in the pharmaceutical domain. Raoul pulled no punches stating, "PBMs have put a focus on driving up their own profits at the expense of patients" and stressed the importance of "reforms that ensure prescription pricing is transparent and reduce the financial burden on patients."

PBMs, acting as intermediaries within the prescription drug sector, have for decades operated with minimal oversight, leveraging their position to negotiate terms that frequently benefit their financial interests, often at the expense of pharmacies and consumers. Exhibiting practices such as preferential treatment towards PBM-affiliated pharmacies and methodologies that obscure pricing information, PBMs have been criticized for promoting a less competitive market and limited access to medications, which has compelled states to adopt measures in the absence of uniform federal regulation to safeguard consumer interests and guarantee fair market practices.

Earlier this year Attorney General Raoul, with the backing of 38 state attorneys general, made an appeal to Congress for further federal oversight of PBMs, a significant move given that together with today's brief, it marks Raoul's sustained commitment to enhancing state oversight of pharmacy benefit managers to curb their uninhibited domination and introduce transparency to their operations, creating a more equitable health care environment for the public. Joining Attorney General Raoul's brief are attorneys general from states across the political and geographic spectrum, including Arizona, California, Colorado, and numerous others, spotlighting the wide-reaching consensus on the issue.