The Arkansas Insurance Department is cracking down on law-breaking by four pharmacy benefit managers after years of violations of state insurance laws.
On Tuesday, the office of Gov. Sarah Huckabee Sanders (R) announced the state’s insurance department had brought penalties and hearings against Caremark, Express Scripts, Magellan and MedImpact. It said it was the state’s largest penalty in a pharmaceutical enforcement action ever, with $1.47 million in possible penalties.
In June the department issued a bulletin advising PBMs to stop unfairly paying Arkansas pharmacies less than the national average drug acquisition cost in violation of state law. It’s seeking $5,000 per violation for each payment made under NADAC amounts.
Arkansas is alleging 19 violations by Express Scripts, 50 by Magellan and a stunning 217 by Caremark. Read the governor’s announcement here.
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