What is the story about?
What's Happening?
Express Scripts, a pharmacy benefit manager, is contesting a decision by Judge Leslie E. Kobayashi of the US District Court for the District of Hawaii. The judge had remanded Hawaii's lawsuit against Express Scripts and other entities managing prescription benefits to state court. The lawsuit alleges that these pharmacy benefit managers profited from artificially inflating prescription drug costs. Express Scripts argues that the case should remain in federal court because it involves the company's work as a federal contractor. The company has filed an opening brief with the US Court of Appeals for the Ninth Circuit, asserting that the federal statute was incorrectly applied in the judge's ruling.
Why It's Important?
The outcome of this legal battle could have significant implications for the pharmaceutical industry and state-federal jurisdictional boundaries. If Express Scripts succeeds in keeping the case in federal court, it may set a precedent for similar cases involving federal contractors. This could impact how states pursue legal actions against companies involved in federal contracts, potentially limiting state-level oversight. Additionally, the case highlights ongoing concerns about the pricing practices of pharmacy benefit managers, which could influence future regulatory measures aimed at controlling prescription drug costs.
What's Next?
The US Court of Appeals for the Ninth Circuit will review Express Scripts' arguments and decide whether the case should remain in federal court. This decision could prompt reactions from other states considering similar lawsuits against pharmacy benefit managers. Depending on the outcome, there may be increased scrutiny on the role of federal contractors in the healthcare industry, potentially leading to legislative or regulatory changes.
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