(SPRINGFIELD, IL) – The Pharmaceutical Care Management Association (PCMA) welcomed a federal district court’s decision Monday granting a preliminary injunction against key parts of Illinois’ so-called Prescription Drug Affordability Act (PDAA). The court’s decision temporarily prevents the state from enforcing new burdensome reporting mandates on pharmacy benefit managers (PBMs) that serve self-insured employer and union-sponsored health plans.

The U.S. District Court for the Central District of Illinois concluded that PCMA is likely to succeed in its claim that the onerous reporting provisions are preempted by the Employee Retirement Income Security Act (ERISA), the federal law that establishes a uniform framework for employer-sponsored benefits and protects employers and workers from being forced to navigate a patchwork of state-specific mandates. The court noted that the PDAA’s “extensive reporting requirements . . . are central to, and an essential part of, the uniform system of plan administration contemplated by ERISA.” It went on to rule that the legislation impedes on “Congress’s decision more than 50 years ago to expressly preempt” laws relating to ERISA plans.

The harmful law would have required PBMs to gather and submit extensive sensitive information used to deliver high-quality, cost-effective prescription drug pricing to clients without any meaningful benefit to patients, employers, or unions.

Upon release of the decision, David Marin, President and CEO of PCMA, issued the following statement:

“This injunction is an important victory for employers, labor unions, and the millions of Illinoisans who receive health coverage through self-insured health plans. The court recognized a growing problem: states are increasingly attempting to meddle in prescription drug benefits protected by federal law. Illinois crossed a legal line. The new burdens imposed by the state would force employers to navigate an even more fragmented system and ultimately drive up drug costs for everyone at a time when affordability is a top concern.”

“There are proven ways to lower prescription drug costs for patients and employers. PBMs have been actively promoting those solutions. Adding new mandates and reporting burdens is not one of them. We look forward to continuing our case and protecting affordable drug coverage that employers, unions, and workers across the country rely on.”