Arkansas Insurance Department · August 6, 2024 · Primary source
Governor Sanders, Arkansas Insurance Department Enforce Arkansas Law Against PBMs
Summary
The Arkansas Insurance Department and Governor Sanders announced penalty notices and hearings against four major PBMs: Caremark, Magellan, Express Scripts, and MedImpact, for alleged violations of Arkansas state law prohibiting payments to pharmacies below the national average drug acquisition cost (NADAC). The enforcement follows a June 28, 2024, department bulletin directing PBMs to cease below-NADAC payments. The department is seeking a $5,000 fine per violation, with Caremark alleged to have committed approximately 217 violations, Magellan 50, and Express Scripts 19, totaling up to $1.47 million in possible penalties, described as the largest pharmaceutical enforcement action in Arkansas history.
What this may mean
PBMs operating in Arkansas face per-payment fines of $5,000 for each transaction below NADAC pricing under the state's PBM licensure and payment statutes. The four named PBMs collectively face up to $1.47 million in potential penalties, with formal hearings pending. The action signals that Arkansas will enforce NADAC-floor requirements across all PBM-pharmacy payment arrangements statewide, not merely issue prospective guidance.
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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