Last month, Arkansas Governor Sarah Huckabee Sanders signed a new law that could significantly impact pharmacies in the state. The law bans pharmacy benefit managers (PBMs) from holding permits for prescription drug sales. This means that large pharmacy chains like CVS may have to shut down their locations in Arkansas.
The new law will take effect on January 1, 2026. It specifically targets pharmacies that are affiliated with PBMs, which have been criticized for their role in the prescription drug market. Many small, independent pharmacies argue that PBMs create unfair competition by favoring larger companies, such as CVS, over local businesses.
CVS operates Caremark Rx, a major PBM. Following the signing of the bill, CVS announced that it is exploring options to remain open in Arkansas. If they cannot change their business model, they may have to close all 23 of their pharmacies in the state. Walgreens, which has about 40 locations in Arkansas, will also be affected by this legislation.
Governor Sanders expressed her support for the law, stating that PBMs have taken advantage of weak regulations, leading to higher drug prices and reduced access to essential medications for consumers. She believes that this new law will help protect patients.
The Federal Trade Commission (FTC) has reported that the three largest PBMs in the U.S. manage nearly 80% of prescription drug claims. A recent FTC report highlighted how these companies have raised costs for critical medications, including those for serious illnesses like heart disease and cancer.
CVS criticized the new law, calling it “bad policy” that could force them to close their pharmacies. A company spokesperson stated that they are still operating and serving customers for now. However, John Vinson, the CEO of the Arkansas Pharmacy Association, who supports the legislation, mentioned that CVS has options to continue operating. They could choose to give up their PBM license in Arkansas, which would allow them to stay open.
Independent pharmacy owners have long complained that PBMs negatively impact their businesses by paying low prices for prescriptions and pushing patients toward more expensive options. Other states, including Oklahoma and North Carolina, have already begun regulating PBMs to limit their influence.
At the federal level, there have been efforts to increase transparency regarding PBMs and their compensation. Recently, two bipartisan bills aimed at lowering prescription drug prices and holding PBMs accountable were reintroduced in Congress.
As the new law approaches its implementation date, the future of CVS and other pharmacy chains in Arkansas remains uncertain. The situation is evolving, and many are watching to see how these changes will affect access to medications in the state.