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Judge Blocks Arkansas Law Barring PBM-Owned Pharmacies

The injunction prevents Act 624 from taking effect pending the state’s appeal

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Overview

  • U.S. District Judge Brian Miller issued a preliminary injunction on July 28, pausing the enforcement of Act 624.
  • Act 624, signed by Gov. Sarah Huckabee Sanders in April, would have prohibited pharmacy benefit managers from owning retail pharmacies starting August 5.
  • PBMs including CVS Caremark, Express Scripts and Optum Rx argued the law discriminates against out-of-state businesses in violation of the Commerce Clause.
  • Arkansas Attorney General Tim Griffin has vowed to appeal, asserting the restriction is needed to protect independent and rural pharmacies from anticompetitive PBM practices.
  • Similar PBM ownership bans are under consideration in Vermont, Texas and New York as part of broader efforts to address drug pricing and market concentration.