Bitter Pill for Pharmacy Giants

The nation's first-ever state law designed to regulate pharmacy benefit managers will remain intact.

Ending a three-year legal battle, the Supreme Court on Monday declined to review a Maine law requiring PBMs to put their clients' interests ahead of their own. Giant PBMs like Caremark (CMX Quote) and Medco (MHS Quote) have been accused of engaging in secret deals that line their own pockets and cut into the savings that they are hired to secure for others. The PBMs have consistently stood by their business practices while fighting against state laws that threaten their lucrative strategy.

But this week a Maine senator, who chairs a multi-state group pushing for widespread reforms, was quick to celebrate the survival of his state's PBM law. ...