CVS and Express Scripts have taken legal action against a new Arkansas law that prohibits pharmacy benefit managers (PBMs) from owning or operating pharmacies in the state. This law, signed by Governor Sarah Huckabee Sanders just over a month ago, is the first of its kind in the United States.
The law aims to protect independent pharmacies, especially those in rural areas, which supporters claim are being driven out of business by the practices of PBMs. However, Express Scripts argues that the law could have serious negative effects, potentially leading to the closure of many pharmacies across Arkansas. They warn that it could confuse patients about where to get their medications and disrupt long-standing relationships between patients and their pharmacists.
CVS has also voiced strong opposition, stating that the law threatens free commerce and fair competition. They have indicated that if the law goes into effect, they may have to shut down their 23 retail pharmacies in Arkansas. CVS previously ran advertisements urging Governor Sanders to veto the legislation.
Arkansas Attorney General Tim Griffin defended the law, claiming it is necessary to curb the power of PBMs, which he says profit at the expense of consumers. He expressed his commitment to vigorously defend the law in court.
This legal battle is part of a broader trend, as several states are looking to regulate PBMs. Recently, a group of attorneys general from various states urged Congress to consider similar legislation to protect consumers.
As the situation unfolds, the impact of this law on Arkansas’s pharmacy landscape and on consumers remains to be seen.