CVS Health files lawsuit to block Act 624 banning PBMs from owning pharmacies
CVS Health on May 29 filed a lawsuit in the United States District Court for the Eastern District of Arkansas Central Division to block Act 624. A company spokesperson issued a statement to Drug Store News which said Act 624 is a harmful law that will shut down 23 CVS Pharmacy locations, eliminate hundreds of jobs and drive-up costs for Arkansans. “This unconstitutional law puts local politics ahead of patients, restricting their access to life-saving medications and undermining fair competition.”
Arkansas, Gov. Sarah Huckabee Sanders on April 16 signed HB 1150 into law. The legislation prohibits state permits to pharmacies owned by pharmacy benefit managers effective Jan. 1, 2026.
The statement continued, “Act 624 is designed to target CVS Health, not to protect patients. Arkansas lawmakers crafted the law to exclude CVS Health’s pharmacy operations while protecting in-state pharmacy businesses, which often charge higher prices. There is no way around the fact that Act 624 will limit patients’ options and increase the cost of their medicines."
In the statement, CVS Health added, “For these reasons, Act 624 violates the Constitution’s Dormant Commerce Clause, which prevents states from discriminating against or unfairly burdening out-of-state business. Act 624 also is unlawful because it violates Equal Protection rights and is preempted by federal law. We have a right and responsibility to challenge this harmful policy to protect patient care and fair competition."
[Related: CVS may close stores in Arkansas following law banning PBMs from owning pharmacies]
CVS Health said its 23 CVS Pharmacy locations in Arkansas are currently open and will continue to operate for the immediate future. "We have not announced any plans to close stores at this time and we’re evaluating any and all options we may have to keep our pharmacies open, including through this legal action," the company statement said.
CVS Health's statement continued, “With Act 624 signed into law, the Arkansas legislature and governor are forcing 23 community pharmacies to close by Jan. 1, 2026, including some of the very few that are open 24 hours; fire more than 500 local health care workers; erode access to specialized pharmacy care for the 10,000 Arkansas patients with serious conditions who rely on additional support; and increase the cost of Arkansas health benefits by millions of dollars each year."
[Read more: FTC releases second interim staff report on PBMs]
CVS Health concluded in the statement, “Facts should matter more than rhetoric, and a simple economic analysis could have avoided all this chaos. Factoring in both closures AND openings, there are 14 more independent pharmacies operating in Arkansas today than there were in 2019, and CVS Caremark reimburses independent pharmacies in Arkansas more than it does CVS pharmacies. Small businesses, employers, health plans and others are going to have to pay more for prescription drugs starting next year because of this new law."