Sponsors of self-insured health plans should take note of a recent Seventh Circuit case addressing when states can regulate their plans.

On August 26, 2026, the Seventh Circuit upheld the lower court’s ruling in Central States, Southeast and Southwest Areas Health and Welfare Fund and Charles A. Whobrey v. McClain.

The case deals with the way in which states may regulate pharmacy benefit managers (PBMs) and, by extension, self-insured health plan sponsors.