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Arkansas Attorney General · August 27, 2026 · Primary source

Attorney General Griffin Applauds Federal Appeals Court Opinion Regarding Fair Compensation For Arkansas Pharmacies

Score 73PRIMARYregulatoryState AGAR

Summary

The U.S. Court of Appeals for the Seventh Circuit unanimously affirmed the dismissal of a challenge to Arkansas Insurance Department Rule 128, which requires fair and reasonable reimbursement for pharmacies' dispensing services. The court held that Rule 128's dispensing fee requirement is a permissible cost regulation not preempted by the Employee Retirement Income Security Act, and that its reporting requirements are incidental and necessary to enforcement, also not preempted by ERISA. The decision protects the state regulation's continued enforcement against pharmacy benefit managers.

What this may mean

The Seventh Circuit ruling means Arkansas Rule 128 remains in force, requiring PBMs operating in Arkansas to pay pharmacies, including rural and independent pharmacies, fair and reasonable dispensing fees. The ERISA preemption challenge to the dispensing fee and reporting requirements was rejected, establishing a precedent that similar state pharmacy reimbursement regulations in the Seventh Circuit are not automatically preempted by ERISA. This outcome directly affects PBMs and pharmacies contracting under Arkansas health plans.

Informational only. Not legal, medical, financial, or other professional advice. Always consult a qualified professional familiar with your specific facts before relying on any item.

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