National Association of Chain Drug Stores (NACDS) President and CEO Steven C. Anderson issued the following statement today, praising Texas Attorney General Ken Paxton’s validation that the state’s existing pharmacy benefit manager (PBM) reform laws – HB 1763 and HB 1919 – passed in 2021 are enforceable and are not hampered by the Employee Retirement Income Security Act (ERISA):
“At the hands of the PBM middlemen, Texans face drug-price inflation, lack of cost and price transparency, loss of pharmacy choice, barriers to needed medications, and the disappearance of their trusted local pharmacies – all while the PBMs enjoy massive profits. Texas Attorney General Ken Paxton made a wise, well-reasoned, and decisive ruling affirming that Texas and other states have the legal authority to take necessary actions against these harmful practices. This decision aligns with key rulings, including those from the U.S. Supreme Court and the 8th Circuit Court of Appeals, which upheld state laws aimed at reforming PBM practices and mitigating their impact on patients and pharmacies.
“Hiding behind ERISA has been a favorite of the middlemen’s lobbying tactics at the state level. But flimsy PBM excuses are dwindling, and for Texans and more Americans help is on the way.
“From 2021 to 2024, states have enacted more than 160 new PBM reform laws. The momentum continues. In addition, the U.S. Congress has the opportunity to do its part, with a long-overdue package of PBM reform laws ready to go with broad bipartisan consensus in the House and Senate. By the way, it should not be lost on the U.S. Congress that, last year, 39 state attorneys general called on Congress to act on the aspects of reform for which it has responsibility.
“NACDS salutes Texas Attorney General Ken Paxton for standing up for a sound reading of the law that will help put Texans and more Americans ahead of the cynical tactics of the PBMs.”
