Independent Pharmacies’ Current Hope for State, Federal PBM Reform

According to many experts in pharmacy law, the efforts to reform pharmacy benefit manager (PBM) business practices among US states is not going unnoticed. While federal PBM reform has been historically difficult to see bills passed into law, actions at the state level are said to have some, if not a significant, effect on the potential for federal reform.

“I have no doubt that federal legislators are looking at the states and really looking at what are we trying at the state level to rein in some of these business practices that are really causing trouble,” Lucas Morgan, Esq, shareholder with Buchanan Ingersoll & Rooney, told Drug Topics. “If we look at the 3 main categories that Dae and I are often dealing in, we’ll look at Medicare, Medicaid, and then private commercial plans. They kind of all have their own unique legal framework.”

Morgan, along with his colleague Dae Lee, PharmD, Esq, CPBS, shareholder with Buchanan Ingersoll & Rooney, is one of the aforementioned law experts who works closely with independent pharmacies. They joined Drug Topics at this year’s National Community Pharmacists Association Convention & Expo to give us an update on state-level PBM reform and how those events may impact federal reform heading into 2026.

They started by discussing their insights on state-level reform, exploring laws like Utah’s pass-through rebate statute and the current status of Arkansas’ bill to prohibit PBMs from owning and operating pharmacies. Then, Morgan and Lee addressed what they’ve seen throughout their experience defending independent pharmacies and keeping their finger on the pulse of major events surrounding pharmacy law.

“There is bipartisan support for [PBM reform]. We're seeing that at both the federal and state level. As we all know, that is unique,” continued Morgan. “I have had the opportunity to consult with different legislators and lawmakers at different levels. One of the first questions we get asked is really, ‘Can you tell us what's working at the state level?’”

Stay tuned for weekly podcast episodes of Over the Counter, powered by Drug Topics, every Thursday afternoon. Check out our most recent episode with Clipper Young, PharmD, MPH, CDCES, BC-ADM, BCGP, professor at the Touro University California College of Osteopathic Medicine. He joined us to discuss his work in diabetes management as well as community health care.

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