WASHINGTON, D.C., April 8, 2026 –The U.S. Court of Appeals for the Sixth Circuit yesterday affirmed the decision of the lower court in McKee Foods Corporation v. BFP, Inc. The court agreed with McKee Foods that the Employee Retirement Income Security Act (ERISA) preempts key provisions of Tennessee’s law requiring that employers include “any willing pharmacy” in the networks maintained by the pharmacy benefit plans that employers sponsor for workers and their families, among other provisions. Last year, The ERISA Industry Committee (ERIC) filed a “friend of the court” brief supporting McKee Foods’ position. The quote below can be attributed to Dillon Clair, Director of State Advocacy for ERIC.
“The closing lines of the decision says it all – ‘States can enact laws looking to regulate health care and PBMs. But those laws cannot trespass into ERISA’s territory.’ Simply put, there is a clear line that defines where the role of a state ends and the protection of federal ERISA law begin. In the case of McKee Foods, the court determined that Tennessee laws governing the activity of pharmacy benefit managers crossed that line and threatened the ability of McKee – and self-funded employer plans like theirs – to design and administer plans that reflect the needs of their workforce. We applaud this decision and appreciate that the court recognized the significant role ERISA plays in allowing companies like McKee to serve not only workers in Tennessee but across the country. ERIC remains committed to working with state policymakers and allies to reduce prescription drug costs and will continue to advocate for solutions that complement the protections envisioned by Congress when they passed ERISA more than 50 years ago. And the ERIC Legal Center will continue to defend both the integrity of ERISA preemption and national uniformity, and the rights and autonomy of our member companies.”
The decision can be found here.