Washington, DC — On June 30, 2025, the U.S. Supreme Court delivered welcome news to union health plans across the country by declining to take up the Mulready case—a legal challenge out of Oklahoma that could have dramatically altered the landscape of benefit design under federal ERISA protections.
The Court’s decision not to review the case lets stand a 10th Circuit ruling that reaffirms the core legal principle: states cannot interfere in the design of self-funded ERISA and Medicare Part D health plans. For the union community, this is a significant win.
The case challenged four provisions in Oklahoma law that would have restricted the ability of health plans and pharmacy benefit managers (PBMs) to design effective, affordable pharmacy networks. At stake was the right of union trust funds—through their benefit plans—to determine how best to serve their members without having to navigate a patchwork of conflicting state mandates.
“This is a pivotal moment for labor,” said Tonia Sorrell-Neal, Senior State Affairs Director at the Pharmaceutical Care Management Association (PCMA). “The Court’s action today reaffirms what we’ve long fought to protect: that self-funded, and multi-employer union plans retain the flexibility to design benefits that work best for their members—not benefits dictated by individual state legislatures.”
The Solicitor General of the United States, asked earlier this year to weigh in, also signaled support for federal preemption, noting that the contested Oklahoma provisions overstepped the role of states in regulating ERISA and Medicare Part D plans.
What This Means for Labor Trusts
- Union trusts maintain control over plan designs. States cannot mandate how your network must be structured or which pharmacies must be included.
- Managed costs are protected. Preferred networks, negotiated discounts, and utilization tools remain intact—ensuring members receive quality care at sustainable prices.
Labor’s awareness and engagement continues to be critical in the defending of the interests of working families and retirees.
