Tenth Circuit Reaffirms Preemption of State Pharmacy Network Regulations

The US Court of Appeals for the Tenth Circuit recently held in Pharmaceutical Care Management Association v. Mulready (PCMA) that the Employee Retirement Income Security Act (ERISA) and Medicare Part D preempted several provisions of Oklahoma law regulating pharmacy benefit managers and pharmacy networks. Left unchallenged, these provisions threaten the ability of employers and Medicare Advantage organizations to design uniform nationwide health plans. The Tenth Circuit’s decision in favor of PCMA overturned a lower court decision that caused great concern about the ability of states to indirectly dictate the design of plans governed by ERISA and Medicare Part D.

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Andrew Liazos
Andrew C. Liazos is the global chair of McDermott’s Benefits & Compensation Practice Group and has practiced at McDermott for over 25 years. Andrew focuses his practice on compensation and benefit matters, including related securities, M&A, IPO, private equity, international and litigation matters. Clients range from Fortune 500 companies to compensation committees to individual executives in employment and severance negotiations. Read Andrew Liazos' full bio.


Michael B. Kimberly
Michael B. Kimberly is co-chair of the Firm’s Supreme Court and Appellate Practice Group. He handles complex appeals and trial court motions with a primary focus on antitrust law, administrative law and constitutional law. Click here to read Michael B. Kimberly's full bio. 


Sarah P. Hogarth
Sarah P. Hogarth advises clients on complex litigation matters with a focus on appellate advocacy and critical motions practice. Read Sarah P. Hogarth's full bio.

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