Armon Quoted on Unfair Prescription Drug Practices Act

Armon Quoted on Unfair Prescription Drug Practices Act

"Pharmaceutical Practices Under Scrutiny in Court", Inside Counsel Magazine

January 1, 2006

Bruce D. Armon, a Partner and Chair of the Regulatory, Privacy, and Healthcare Contracting Practice Group in the Philadelphia office, was quoted in this article about the November 2005 Maine 1st Circuit Court of Appeals unanimous controversial ruling that allowed the Unfair Prescription Drug Practices Act (UPDPA) to remain a law.

The ruling could have a nationwide impact on the practices of pharmacy benefit managers (PBM), the powerful middleman between drugmakers and large purchasers. It could also impact the way insurers, employer health plans and government agencies buy prescription drugs.

"This decision will certainly change the business relationships PBMs have," Mr. Armon said. "It will give the people they contract with far greater leverage to search for a better deal."

The UPDPA will put health benefits providers in a better position to determine whether PBMs were really giving them the best deals for their money.

"If Maine shows that it's realizing cost savings, that might spur a federal initiative," Mr. Armon said. "In the meantime, PBMs will be very cognizant of their activities, and their government affairs folks are going to be lobbying state governments."