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CVS, Express Scripts sue Arkansas over ban on PBM-owned pharmacies

May 29 lawsuits contend Act 624 breaches the Dormant Commerce Clause by disqualifying PBMs from operating pharmacies.

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Overview

  • On May 29, CVS Health and Express Scripts filed separate suits in federal court in Little Rock, arguing Act 624’s prohibition on PBM-operated pharmacies violates interstate commerce protections.
  • Signed into law in April by Gov. Sarah Huckabee Sanders, Act 624 bars pharmacy benefit managers from holding pharmacy licenses and revokes or denies renewal of existing PBM-affiliated permits starting Jan. 1, 2026.
  • CVS warns the measure will force closure of its 23 Arkansas stores and cut hundreds of jobs, while Express Scripts says its mail-order and specialty pharmacy services for over 20,000 TRICARE beneficiaries could be halted.
  • Arkansas Attorney General Tim Griffin has pledged to defend the law as necessary to curb PBM-driven price manipulation and protect independent pharmacies in rural and urban communities alike.
  • Judicial rulings on these challenges could influence other states considering similar PBM restrictions and inform federal inquiries into PBM practices.