New Arkansas law could force all CVS pharmacies to close by 2026
By
All 23 CVS Pharmacy locations in Arkansas are at risk of closing following the passage of an obscure new state law. The legislation, known as Act 624, was signed into law last month by Governor Sarah Huckabee Sanders (pictured). It bans Pharmacy Benefit Managers (PBMs) from owning or operating pharmacies starting in 2026.
It would make Arkansas the first state to prohibit vertical integration between PBMs and pharmacies - a business model used by CVS Health through its subsidiary, CVS Caremark. Supporters say the law addresses longstanding concerns about market competition and transparency in the pharmaceutical supply chain.
Governor Sanders called the measure necessary to curb what she described as 'abusive' PBM practices. 'These massive corporations are attacking our state because we will be the first in the country to hold them accountable for their anticompetitive actions,' Sanders said in an April press release. PBMs act as intermediaries between drug manufacturers, insurers and pharmacies, negotiating prices and determining reimbursement rates.
Critics argue that PBMs who also own pharmacies can steer patients to their own outlets while under-reimbursing independent competitors. John Vinson, CEO of the Arkansas Pharmacists Association, said the law aims to restore fairness in the marketplace. 'The Arkansas Pharmacists Association is supportive of Act 624,' Vinson said. 'Act 624 is pro-business and pro-fair competition as it will support a market to remove conflicts of interest and stop price setters from also being price takers in a way that raises drug prices while also squeezing out market competitors.'
CVS Health warns the law could have serious consequences for patients and health plans across the state. A company spokesperson told Newsweek the legislation will increase drug costs and disrupt care for over 340,000 CVS pharmacy patients in Arkansas. 'All of our 23 Arkansas stores are currently open and will continue to operate for the immediate future. We're doing everything we can to continue to provide pharmacy services to our 340,000+ Arkansas pharmacy patients,' the spokesperson said Tuesday.
CVS also disputes claims that PBMs harm independent pharmacies, noting that there are currently 14 more independent pharmacies in Arkansas than in 2019. The company also argued that its PBM reimburses independent pharmacies at a higher rate than CVS locations in 61 percent of cases.
'Facts should matter more than rhetoric, and a simple economic analysis could have avoided all this chaos,' the spokesperson added. '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. Proponents of the bill have consistently made misleading claims about the need and rationale for this legislation, while downplaying the devastating impact it will have on patient care.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Auto Blog
17 minutes ago
- Auto Blog
Walmart is selling a ‘very roomy' mini refrigerator for 40% off, and shoppers say it ‘works great'
Autoblog aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission. Warm drinks in the summer don't really hit the same, but thankfully there are ways to ensure your beverages are always chilled. For example, you can invest in this mini fridge from Walmart while it's $60 off for a limited time only. The Demuller Mini Refrigerator is on sale for $90, which is 40% off the original $150 price tag. This mini fridge holds an impressive 4.1-star rating at Walmart and shoppers say it 'works great.' It's also marked as a Walmart Flash Deal, meaning it won't be discounted forever. Demuller Mini Refrigerator, $90 (was $150) at Walmart Whether you need a place to store your drinks in the garage or your basement, this mini fridge will fit. It's a little over 31 inches high and 15 inches wide, and thanks to its depth of 31 inches, you should be able to refrigerate plenty of drinks without taking up a bunch of space. Like most fridges, this miniature version has double doors, with one section meant for refrigeration and the other for freezing. This silver mini fridge also features some customization, as there are two removable plastic shelves that can be taken out if you plan to store something really large. And if you're ever worried about an uneven fridge or drinks sliding on a slanted surface, this fridge employs two adjustable legs that allow it to be level and stable 24/7. Last, but not least, the fridge's internal temperature can be controlled with a simple knob, letting you really chill things when you have meat and other perishable items or reduce the energy a bit for simpler stuff like soda. 'Very roomy and my food was kept cold,' one shopper said. 'It works great,' another reviewer exclaimed. A third wrote, 'Just what I ordered.' The Demuller Mini Refrigerator is currently a Walmart Flash Deal, so there's no guarantee this discount will be available the next time you check. Take advantage of the 40% markdown today before it expires. About the Author Daniel Donabedian View Profile
Reuters
25 minutes ago
- Reuters
Los Angeles, progressive beacon at center of anti-Trump backlash
LOS ANGELES, June 10 (Reuters) - Protests in Los Angeles against raids on suspected undocumented immigrants have turned into the strongest domestic backlash against President Donald Trump since he took office in January. Here is how the Democratic-leaning city and state of California vary from Trump's Republicans and his support in the U.S. heartland. Nationwide, Trump won around 2.5 million more votes than his Democratic rival Kamala Harris in the November presidential election but in Los Angeles, Harris won by a margin of roughly two to one. Of the 50 U.S. states, California backed Harris by the fifth largest margin. California is also home to several top-level Democrats, including Harris herself, and long-time former Speaker of the House of Representatives Nancy Pelosi. Governor Gavin Newsom is a Democrat, as is the mayor of Los Angeles, Karen Bass. Both have complained about Trump's tactics this week. The party raises millions in the state from wealthy donors and grassroots supporters, sometimes in a single day. At 27.3%, California has the highest foreign-born population of any U.S. state, compared to 13.9% of the total U.S. population, according to a 2024 Census report. Nearly half of Angelenos are Hispanic or Latino and some 35% of the city's total population is foreign-born, according to the American Community Survey, with many cultural and business ties to Mexico, which is only about a two-hour drive south. Faced with persistently bad air quality, especially in cities with strong driving cultures such as Los Angeles, California has developed some of the strictest environmental regulations in the country, opposed by many Republicans. A landmark plan to end the sale of gasoline-only vehicles by 2035 in California is in the crosshairs of a battle between its Democratic leadership and the Republican-run federal government, also because many other states replicate California's first-in-the-nation action. In May, the Republican-run Senate in Washington voted to ban the plan and it is now awaiting Trump's signature. He is expected to sign it this week, according to industry officials. American movies and television are one of the most visible U.S. exports, emanating from an LA-based industry that had been hailed by liberals for boosting diversity but criticized by some conservatives for creating films that include LGBT stories. In May, Trump suggested a tariff on movies produced in foreign countries to protect a domestic industry that he said was "dying a very fast death." But when China retaliated by saying it would curb American film imports, he prompted laughter at a cabinet meeting by a response that signaled his derision for Hollywood: "I think I've heard of worse things."
Reuters
31 minutes ago
- Reuters
DeChambeau not seeking LIV Golf exit: 'they see the value in me'
OAKMONT, Pennsylvania, June 10 (Reuters) - Bryson DeChambeau, who has evolved into one of the game's most popular players, revealed on Tuesday that his contract with LIV Golf expires next year and that he has no plans to take his big-hitting talents elsewhere. DeChambeau joined LIV in 2022 and his future with the Saudi-backed circuit has been the source of speculation, with some suggesting the two-times major champion turned down a proposal for a new contract and is looking to return to the PGA Tour. But DeChambeau, speaking to reporters at Oakmont Country Club ahead of his U.S. Open title defence this week, said he feels the team element of LIV Golf is a viable option and one he wants to be a part of. "We're looking to negotiate end of this year, and I'm very excited," said DeChambeau, who is captain of LIV Golf's Crushers GC. "They see the value in me. I see the value in what they can provide, and I believe we'll come to some sort of resolution on that. Super excited for the future." LIV Golf, which features no-cut, 54-hole events, held its inaugural event in June 2022, and through mega-money contracts and lucrative purses has lured some of golf's biggest names. The PGA Tour and Saudi backers of rival LIV Golf have yet to reach an official deal that would unite the game of golf despite agreeing to a "framework agreement" two years ago to merge and form one unified commercial entity. "I think that LIV is not going anywhere," said DeChambeau, who headlines the list of 14 LIV Golf players in the U.S. Open field this week. "(Saudi Arabia Public Investment Fund Governor Yasir Al-Rumayyan) has been steadfast in his belief on team golf, and whether everybody believes in it or not, I think it's a viable option. I think it's a viable commercial option." DeChambeau said he feels there is a "sustainable model" for team golf. "Our team has been EBITDA positive for the past two years, so we're starting to grow and move in the right direction, just like TGL," said DeChambeau. "TGL has done a great job. They've got some teams that are making some money, and I believe there is a sustainable model out there." TGL is a tech-infused indoor golf league created by Tiger Woods and Rory McIlroy that held its first season earlier this year and featured players hitting shots at a simulator screen before moving to a green that can rotate 360 degrees, creating hole-to-hole variations. "How it all works with the game of golf, who knows, but I know my worth. I know what LIV brings to the table," DeChambeau added. "And I'm excited for the future of what golf is going to be."
