preemption

Unless something surprising happens, Judge Amy Coney Barrett is expected to take the bench before the Supreme Court hears the most recent challenge to the constitutionality of the Affordable Care Act on November 10. But before she is confirmed the Court will hear 10 cases in its October siting with only eight Justices on the bench.

At least four of those cases are of interest to states and local governments. The State and Local Legal Center (SLLC)...

History will remember Justice Ginsburg as a glass ceiling smasher, a feminist, a liberal, a dissenter, and an icon. States and local governments will also remember something subtler about her which was more visible in the Court’s lower profile cases. And that was her pragmatism.

Perhaps the most important case for states and local governments where Justice Ginsburg demonstrated this quality is South Dakota v. Wayfair. She was the sole liberal...

In a 5-4 decision in Kansas v. Garcia the Supreme Court held that the Immigration Reform and Control Act (IRCA) does not preempt state statutes that provide a basis for identity theft prosecutions when someone uses another person’s Social Security Number on their state and federal tax-withholding forms.

The IRCA requires employers to verify, using a federal work-authorization form, that an employee is authorized to work in the United States....

In Rutledge v. Pharmaceutical Care Management Association the Supreme Court will decide whether states’ attempts to regulate pharmacy benefit managers’ (PBMs) drug-reimbursement rates are preempted by the Employee Retirement Income Security Act (ERISA).

PBMs are an intermediary between health plans and pharmacies. Among other things, they set reimbursement rates to pharmacies dispensing generic drugs. Contracts between PBMs and pharmacies create pharmacy networks. According to the Eighth Circuit, “[b]ased upon these contracts and in order to participate in a preferred network, some pharmacies choose to accept lower reimbursements for dispensed prescriptions.” So, in some instance pharmacies lose money.

Arkansas passed a law requiring that pharmacies “be reimbursed for generic drugs at a price equal to or higher than the pharmacies’ cost for the drug based on the invoice from the wholesaler.”

The D.C. Circuit upheld most of the Federal Communications Commission’s 2018 order retreating from net neutrality. But the court struck down the portion of the order disallowing states and local governments from adopting measures preempting the order. Numerous states and local governments challenged the legality of the order. 

Net neutrality requires internet service providers to treat all Internet communications the same and not block, speed up or slow down any content. Net neutrality was federal policy until the 2018 order.

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