CVS threatens to close all 23 Arkansas pharmacies as it sues to block a groundbreaking law aimed at curbing the power of pharmacy benefit managers in the state.
Key Takeaways
- CVS and Express Scripts have filed a lawsuit against Arkansas’s first-in-the-nation law prohibiting pharmacy benefit managers (PBMs) from owning pharmacies.
- The law, signed by Governor Sarah Huckabee Sanders, aims to protect independent pharmacies, especially in rural areas, from being forced to close by PBMs.
- CVS has threatened to close all 23 of its retail pharmacies in Arkansas if the law is enforced, claiming it undermines free commerce and fair-market competition.
- Express Scripts warns of “devastating consequences” including pharmacy closures and patient confusion regarding prescription access.
- Arkansas Attorney General Tim Griffin defends the law as necessary to challenge the excessive power of PBMs and protect consumer interests.
Corporate Giants Challenge Arkansas’s Pioneering PBM Legislation
In a significant development for the pharmacy industry, corporate giants CVS and Express Scripts have launched a legal battle against Arkansas’s groundbreaking law restricting pharmacy benefit managers. The lawsuit targets legislation signed by Governor Sarah Huckabee Sanders that prohibits PBMs from owning or operating pharmacies within the state. This first-of-its-kind law in the United States represents a bold attempt to address what many see as anti-competitive practices by PBMs, the powerful middlemen who negotiate drug prices between insurers and pharmacies.
The lawsuit highlights the escalating tension between large pharmacy chains and states seeking to regulate PBMs. Arkansas’s legislation was specifically designed to protect independent pharmacies, particularly those serving rural communities, from being squeezed out of business by PBMs who often favor their own affiliated pharmacies. Supporters argue that PBMs create an uneven playing field that threatens the survival of local pharmacies, which are often vital healthcare access points in underserved areas of the state.
PBM reform is gaining ground. Arkansas just passed laws banning PBMs from owning pharmacies—a major step to end conflicts of interest. State attorneys general are also pressuring Congress to follow suit. It’s time for federal action. #PBMReform #JusticeForCole #StopTheMonopoly… pic.twitter.com/1KoCT22TyB
— Angry Dad (@angrydadwi) April 20, 2025
PBMs Warn of “Devastating Consequences”
Express Scripts has issued stark warnings about the potential impact of Arkansas’s new legislation. The pharmacy benefit manager claims the law will have “devastating consequences,” Express Scripts, a major PBM. The company paints a dire picture of the law’s potential effects, suggesting it could lead to pharmacy closures throughout the state and disrupt established patient-pharmacist relationships that many Arkansans depend on for their healthcare needs.
“And it will create mass confusion among Arkansans about where and how they can receive needed prescription medications, irreparably breaking bonds that patients have formed over many years with their pharmacists and pharmacy-provided home-visit nurses,” shared Express Scripts.
CVS has been equally forceful in its opposition, threatening to close all 23 of its retail pharmacies in Arkansas if the law is enforced. The pharmacy chain argues that the legislation represents an unconstitutional interference with interstate commerce. In its legal filings, CVS characterized the law in dramatic terms, suggesting it undermines fundamental principles of the American economic system and unfairly targets specific business models.
Arkansas Defends Consumer Interests Against Corporate Power
Arkansas Attorney General Tim Griffin has emerged as a staunch defender of the new law. Griffin frames the legislation as a necessary check on the outsized influence of pharmacy benefit managers in the healthcare marketplace. His position reflects growing concerns among state officials nationwide about the role PBMs play in rising prescription drug costs and diminishing access to local pharmacies, particularly in rural communities that have limited healthcare options.
“wield outsized power to reap massive profits at the expense of consumers,” said Attorney General Tim Griffin.
The lawsuit represents just one front in a broader national movement to rein in PBMs. Arkansas is not acting alone in this fight – it’s part of a coalition of state attorneys general who are advocating for similar federal legislation to regulate pharmacy benefit managers. This coordinated effort suggests that regardless of the outcome of this specific lawsuit, the pressure on PBMs to reform their business practices is likely to continue growing as more states consider comparable regulatory measures to protect independent pharmacies and consumer interests.
