The ERISA Industry Committee Concerned North Carolina Pharmacy Benefit Manager Legislation Oversteps State Authority, Violates Federal Law

WASHINGTON, June 1, 2023 – The ERISA Industry Committee (ERIC) today said it has “deep concerns” with North Carolina House Bill 246 and the expansive regulation of pharmacy benefit managers (PBMs) that it proposes. Namely, the bill contains several provisions that seek to control the design and administration of self-insured employer health plans governed solely by the federal Employee Retirement Income Security Act of 1974 (ERISA), which PBMs often administer. To highlight the negative impacts posed by HB 246, ERIC developed a legislative outlook memo to better inform advocacy organizations and stakeholder groups also engaged on this statewide effort. 

“If enacted, North Carolina HB 246 would raise health insurance and prescription drug costs across North Carolina as well as jeopardize the affordable benefits that self-insured employer plans are able to secure and provide to workers and families,” said ERIC President and CEO James Gelfand. “Because the legislation would conflict with federal law governing the design and administration of employer health plans nationwide, we also believe the law should and would be preempted.” 

Gelfand added that ERIC, on behalf of its large employer member companies, would consider filing or supporting a lawsuit challenging the law should HB 246 be enacted. 

Read ERIC’s legislative outlook memo highlighting ERISA preemption and health care cost concerns raised by North Carolina HB 246 here


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About The ERISA Industry Committee
ERIC is a national advocacy organization that exclusively represents large employers that provide health, retirement, paid leave, and other benefits to their nationwide workforces. With member companies that are leaders in every sector of the economy, ERIC advocates on the federal, state, and local levels for policies that promote flexibility and uniformity in the administration of their employee benefit plans.