Arkansas has enacted legislation that could force CVS Health to close all 23 of its pharmacies in the state by January 1, 2026. The law, signed by Republican Governor Sarah Huckabee Sanders, prohibits pharmacy benefit managers (PBMs) from owning or operating pharmacies within Arkansas. This measure directly impacts CVS, which owns the PBM Caremark Rx.
Governor Sanders stated, “For far too long, drug middlemen called PBMs have taken advantage of lax regulations to abuse customers, inflate drug prices, and cut off access to critical medications. Not anymore.”
CVS has criticized the legislation, calling it “bad policy” that “forces the closure” of its pharmacies. A company spokesman emphasized that their stores remain open and that they are exploring all options to continue serving Arkansans.
The Arkansas Pharmacy Association supports the law, arguing that PBMs have negatively impacted independent pharmacies by enforcing policies that inflate drug prices and limit access to medications. CEO John Vinson noted that CVS could continue operations by relinquishing its PBM license in the state.
This legislative move aligns with a broader national trend of scrutinizing PBMs. The Federal Trade Commission reported that the three largest PBMs—owned by CVS Health, Cigna, and UnitedHealth Group—manage nearly 80% of prescription drug claims in the U.S. The FTC found that these PBMs have contributed to higher costs for various lifesaving drugs.
Other states, including Oklahoma, Tennessee, and North Carolina, are considering similar regulations to increase transparency and competition in the pharmacy market. At the federal level, bipartisan efforts are underway to reform PBM practices and reduce prescription drug costs.
