CVS responds to Gov. Sanders' New York Times Op-Ed about PBMs
Act 624, signed by Sanders in April, bars companies from running both a pharmacy and a pharmacy benefit manager (PBM), a model used by CVS. PBMs manage prescription drug benefits for insurers, negotiate prices with drug manufacturers and reimburse pharmacies.
In her guest essay on June 10, Sanders wrote that PBMs 'forcibly steer patients away from independent operators' and inflate drug prices. She also wrote that Act 624 lets PBMs keep operating in Arkansas, but, she said, 'they just can't continue to mistreat patients and box out other pharmacies.'
Sanders claimed the three largest pharmacy benefit managers handle 80% of U.S. prescriptions and earn 70% of specialty drug revenue through their affiliated pharmacies.
'Now, CVS is threatening to close down every pharmacy it operates in our state — preferring to take its ball and go home rather than divest from its pharmacy benefit management business and actually serve the patients it claims to care about,' Sanders wrote.
CVS sues Arkansas over new pharmacy law
CVS issued a statement later that day disputing Sanders' characterization of the law, claiming that the new law is about 'choosing winners and losers and rewarding special interests.'
'Out-of-state competitors are disadvantaged,' a CVS spokesperson said. 'In-state competitors, including Walmart, would handsomely benefit from the closures of pharmacies owned by us and others. The losers are the people of Arkansas who will pay more.'
CVS says the law could force it to close 23 pharmacies in Arkansas, affecting 340,000 patients, and block its specialty pharmacy from treating 10,000 high-risk patients with cancer, HIV and rare diseases.
The company is also challenging Act 624 in federal court, arguing it violates the U.S. Constitution.
'PBMs are the last line of defense between drugmakers that want to charge a lot of money, and the American businesses, unions, health plans, and government agencies that want to provide good benefits to people,' CVS said in its response on June 10.
CVS argues the law is unconstitutional because it unfairly targets out-of-state businesses, treats similar companies differently, and conflicts with federal laws like ERISA and Medicare rules. The company also raised concerns about potential conflicts of interest.
'One state representative who co-sponsored this law owns 13 pharmacies by himself,' the company said, linking to state Rep. Brandon Achor's campaign website.
Act 624, introduced as House Bill 1150, was backed by the Arkansas Pharmacists Association and Attorney General Tim Griffin, and passed easily.
Act 624 is scheduled to take effect January 1, 2026.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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