Federal judge blocks Arkansas law barring pharmacy benefit managers from
owning pharmacies in state
[July 29, 2025]
By ANDREW DeMILLO
LITTLE ROCK, Ark. (AP) — A federal judge temporarily blocked on Monday
Arkansas' first-in-the-nation law that would have prohibited pharmacy
benefit managers from owning pharmacies in the state.
U.S. District Judge Brian Miller issued a preliminary injunction against
the law restricting pharmacy benefit managers, who run prescription drug
coverage for big clients that include health insurers and employers that
provide coverage.
Republican Gov. Sarah Huckabee Sanders signed the restriction into law
earlier this year, and it was set to take effect Aug. 5. CVS and Express
Scripts had sued the state over the law.
The law, Miller wrote, "appears to overtly discriminate against
plaintiffs as out of state companies and the state has failed to show
that it has no other means to advance its interests.”
Republican Attorney General Tim Griffin said he respected the court's
decision and planned to appeal.
Supporters of the Arkansas law have said it’s needed because pharmacy
benefit managers are forcing independent pharmacies, especially those in
rural areas, to close. CVS and Express Scripts in their lawsuits said
the restriction would have devastating effects on consumers if it was
allowed to take effect.
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The exterior view of a CVS branch is shown on Tuesday, May 16, 2023,
in Pasadena, Calif. (AP Photo/Marcio Jose Sanchez,File)
 CVS, which ran TV ads urging Sanders
to veto the legislation, has said it would have to close its 23
retail pharmacies in the state if the law takes effect. The company
said it was pleased with the decision.
“We continue to be focused on serving people in Arkansas and are
actively looking to work together with the state to reduce drug
prices and ensure access to pharmacies,” CVS said in a statement.
Arkansas is among several states where lawmakers have taken up
efforts to regulate pharmacy benefit managers.
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