This letter is to the The Honorable Brian Sandoval (NV) requesting veto of SB 539. PCMA believes that SB 539 is counterproductive because it presents significant legal problems including federal ERISA and Medicare preemption and adopts policy that the Federal Trade Commission has indicated could actually raise drug prices. Finally, the bill fails to address key problems identified in the SB 265 veto message, which dealt with similar issues as SB 539.
- SB 539 Is Unconstitutional and Likely to be Struck Down under Federal Law
- Requiring PBMs to Report Rebate Information is Preempted by ERISA
- Requiring PBMs to Report Medicare Rebate Information is Preempted by Federal Medicare Law
- SB 539’s Fiduciary Mandate is Preempted by ERISA
- SB 539 Likely Violates Other Constitutional Provisions
- SB 539’s Terms May Damage PBMs’ Ability to Negotiate Lower Cost Diabetes Drugs