Arkansas faces a massive legal battle as corporate pharmacy giants threaten to close dozens of stores across the state rather than comply with a new law designed to protect independent pharmacies from predatory practices.
Key Takeaways
- CVS and Express Scripts have sued Arkansas over the nation’s first law prohibiting pharmacy benefit managers (PBMs) from owning pharmacies
- Governor Sarah Huckabee Sanders signed the groundbreaking legislation aimed at protecting rural and independent pharmacies
- CVS is threatening to close all 23 of its Arkansas retail pharmacies if the law is enforced
- Express Scripts claims the law will have “devastating consequences” for patients
- Arkansas Attorney General Tim Griffin defends the law as necessary to curb PBMs’ “outsized power” over consumers
Corporate Giants Fight Back Against Arkansas Pharmacy Law
In a bold challenge to state authority, pharmacy giants CVS and Express Scripts have filed a federal lawsuit to block Arkansas’ new law prohibiting pharmacy benefit managers (PBMs) from owning or operating pharmacies within state borders. The legislation, signed by Governor Sarah Huckabee Sanders, represents the first law of its kind in the United States and signals growing concern among conservatives about corporate consolidation in the healthcare sector. The suit marks a critical battleground in the fight between large corporate pharmacy interests and state efforts to protect smaller businesses and consumers from what many see as monopolistic practices.
CVS, which operates 23 retail pharmacies in Arkansas, has taken a particularly aggressive stance, threatening to close all its locations in the state if the law is enforced. The company’s lawsuit claims the legislation “represents an assault on free commerce between the states and the foundational principles of fair-market competition that underpin the Union,” CVS stated in court filings.
PBM reform is gaining ground. Arkansas just passed laws banning PBMs from owning pharmacies—a major step to end conflicts of interest. State attorneys general are also pressuring Congress to follow suit. It’s time for federal action. #PBMReform #JusticeForCole #StopTheMonopoly… pic.twitter.com/1KoCT22TyB
— Angry Dad (@angrydadwi) April 20, 2025
Protecting Rural Communities From Corporate Dominance
Supporters of the Arkansas law argue it’s essential to protect independent pharmacies, particularly in rural areas, where PBMs have been accused of driving small pharmacies out of business through unfair reimbursement practices. PBMs serve as middlemen between insurance companies and pharmacies, negotiating drug prices and determining reimbursement rates. Critics have long argued that when PBMs also own pharmacies, they create an inherent conflict of interest that harms competition and ultimately drives up costs for consumers while pushing independent pharmacies toward extinction.
“PBMs wield outsized power to reap massive profits at the expense of consumers,” Attorney General Tim Griffin stated in defense of the law.
The law represents a growing trend of conservative-led efforts to break up what many see as monopolistic practices that harm small businesses and local economies. Governor Sanders’ support for the legislation aligns with President Trump’s consistent emphasis on supporting American businesses against corporate consolidation that often leads to higher prices and fewer choices for consumers. The law is particularly focused on maintaining pharmacy access in rural communities, where the closure of a single pharmacy can force residents to travel significant distances for essential medications.
Corporate Claims of “Devastating Consequences”
Express Scripts has taken a dramatic tone in opposing the legislation, claiming it will have “devastating consequences” for Arkansas residents. “And it will create mass confusion among Arkansans about where and how they can receive needed prescription medications, irreparably breaking bonds that patients have formed over many years with their pharmacists and pharmacy-provided home-visit nurses,” Express Scripts stated in court documents.
This fight in Arkansas represents just one front in a larger national battle to regulate PBMs. A coalition of attorneys general from multiple states is advocating for similar federal legislation. The lawsuit will likely serve as a test case for other states considering similar measures to protect local pharmacies from corporate consolidation. Attorney General Griffin has vowed to defend the law vigorously, seeing it as essential to protecting both consumers and independent pharmacies from corporate interests that have consistently prioritized profits over patient care and community health needs.
