Two Major Health Care Firms Sue Arkansas Over Controversial Pharmacy Law
Little Rock, AR – In a significant move that could reshape the state’s pharmacy landscape, two leading pharmacy benefit managers (PBMs), Express Scripts and CVS Caremark, have separately filed lawsuits against Arkansas, challenging the constitutionality of a recently enacted law prohibiting PBMs from operating pharmacies in the state. Signed by Governor Sarah Sanders in April, this legislation, known as Act 624, aims to protect local pharmacies from perceived anti-competitive practices by larger PBMs.
Both companies argue that the law, which takes effect in January, is an "assault on free commerce" and unfairly advantages local pharmacies while targeting out-of-state competitors. CVS claims the law could force its 23 retail locations in Arkansas to shut down, jeopardizing more than 500 jobs and access for over 340,000 patients.
The lawsuits note that the legislation includes a controversial exemption for Walmart, which also operates PBM-affiliated pharmacies in the state. This amendment has raised suspicions that the law was specifically designed to favor Walmart while disadvantaging other out-of-state firms.
Express Scripts, which serves a significant number of military families through the TRICARE program, asserts that Act 624 threatens the health of over 50,000 Arkansans who rely on its pharmacy services, including those requiring specialty medications. The company emphasizes that the law violates multiple provisions of the U.S. Constitution, including the commerce clause, and poses risks to federal healthcare regulations.
Arkansas Attorney General Tim Griffin has pledged to defend the legislation, asserting that it was introduced to combat the outsized influence of PBMs, which he claims contribute to higher prices and lower quality care for consumers.
As both legal battles unfold, the outcome could set a precedent influencing how pharmacy services are regulated across the nation.
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