Central States, Southeast and Southwest Areas Health and Welfare Fund v. McLain

Plaintiff, a self-funded multi-employer welfare benefit fund, filed a lawsuit alleging that the Employee Retirement Income Security Act preempted Arkansas Insurance Department Rule 128, which requires the payment of dispensing fees to pharmacies and health plans to report information related to their compensation of pharmacies. The district court dismissed the lawsuit under FRCP 12(b)(6) and plaintiff appealed. The Seventh Circuit affirmed, finding that the dispensing fee was a cost regulation that is not preempted by ERISA and that the reporting requirement fell within an exception allowing for reporting requirements that constituted incidental reporting by ERISA plans. (HAMILTON and KIRSCH, concurring)