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Federal Judge Halts Arkansas Law Barring PBM-Owned Pharmacies

The pause follows a judge’s finding that the ban likely conflicts with the Commerce Clause; the state has announced plans to appeal.

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Overview

  • U.S. District Judge Brian Miller issued a preliminary injunction on July 28 after concluding the law overtly discriminates against out-of-state companies.
  • Act 624, signed by Gov. Sarah Huckabee Sanders, would have prohibited any firm that owns a pharmacy benefit manager from holding a pharmacy license as of August 5.
  • CVS Health and Express Scripts sued in May, warning that enforcement would force the closure of CVS’s 23 Arkansas retail pharmacies and disrupt mail-order and specialty drug services.
  • Attorney General Tim Griffin said he respects the court’s decision and will appeal to defend state efforts to curb PBM practices seen as undermining independent pharmacies.
  • The dispute highlights a broader wave of state regulations and federal scrutiny of PBMs over their influence on drug pricing and competition between chain and independent pharmacies.