Contribute Try STAT+ Today

Amid debate over prescription drug costs, the U.S. Supreme Court will hear a closely watched case on Tuesday that is expected to determine the extent to which the states can regulate pharmacy benefit managers, the controversial middlemen in the pharmaceutical supply chain.

At issue is an Arkansas law that governs reimbursements rates that pharmacy benefit managers, or PBMs, must pay to pharmacies. The law requires PBMs to reimburse pharmacies at or above their wholesale costs paid for generic drugs. It also prevents them from paying their own drug stores more than what is paid to other pharmacies. CVS Health, for instance, owns a PBM and pharmacies.

Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!


What is it?

STAT+ is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.

What's included?

  • Daily reporting and analysis
  • The most comprehensive industry coverage from a powerhouse team of reporters
  • Subscriber-only newsletters
  • Daily newsletters to brief you on the most important industry news of the day
  • STAT+ Conversations
  • Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
  • Exclusive industry events
  • Premium access to subscriber-only networking events around the country
  • The best reporters in the industry
  • The most trusted and well-connected newsroom in the health care industry
  • And much more
  • Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.
  • “…the opaque nature of the supply chain that has ensnared PBMs in the larger debate.”

    The opacity (and thus the snare) is of the PBMs’ own making.

Comments are closed.