William & Mary Business Law Review


John McGuinness


In recent years, Pharmacy Benefit Managers (PBMs) have been subject to increasing regulation in efforts to protect consumers from rising drug prices. Although regulation is needed to control PBMs’ unique market position, the pharmaceutical industry continues to suffer at the expense of consumer choice. Legislation varies between jurisdictions and fails to account for market realities. Recent state proposals attempting to weaponize free market ideals have either failed to obtain the requisite vote or are falsely accused of government overreach hiding behind the veil of marketbased propositions.

This Note will examine the PBM transaction and explain why a regulatory regime aimed to restore consumer choice and industry transparency will produce optimal market conditions without stifling competition.