A federal appeals court on Tuesday affirmed a ruling that upheld Maine’s law requiring pharmacy benefit managers to disclose an array of financial information.

The 1st Circuit Court of Appeals in Boston affirmed an April ruling by federal Judge D. Brock Hornby in the state’s favor in a 2003 lawsuit by the Pharmaceutical Care Management Association, a trade group representing pharmacy benefit managers.

The association had argued that Maine’s Unfair Prescription Drug Practices Act was unconstitutional and could end up harming consumers because benefit managers use confidential information to get drug companies to compete with each other by lowering their prices.

But supporters view the law as a means to promote transparency by giving health plan clients access to information about discounts, drug switching programs and any conflicts of interest involving benefit managers.

The lawsuit claimed that the law was pre-empted by federal law, would amount to a regulatory taking of trade secrets and revenues, and violated due process, freedom of speech and the Commerce Clause of the |Constitution.

In response to the appeals court’s decision, the Pharmaceutical Care Management Association said it will continue to oppose similar legislation in other states.

Mark Hewitt, the association’s president and CEO, said such laws end up increasing drug prices for consumers.


Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.

Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.