
Exclusive: PBM trade group sues Arkansas over pharmacy law
The trade group representing pharmacy benefit managers sued on Monday to overturn a first-in-the-nation state law that prevents them from owning pharmacies in Arkansas.
Why it matters: The Pharmaceutical Care Management Association's lawsuit adds to legal challenges to the ownership ban and comes as other states consider similar policies that blame large drug-price middlemen for rising pharmaceutical prices.
Navitus Health Solutions, a PBM that's not a member of the trade association, is also a plaintiff in the lawsuit.
CVS Health and Cigna, two of the largest PBMs, have filed their own complaints against the law.
What they're saying: The law "will disrupt the way patients, especially patients with very complex medical conditions, receive their medication, and it will require consumers in Arkansas to find new pharmacies," said Katie Payne, senior vice president of public affairs and head of advocacy at PCMA.
More than 40 retail pharmacies in Arkansas that together fill millions of prescriptions each year will have to cease operation under the law, according to the complaint.
Payne said that the law will worsen drug affordability in the state by prohibiting out-of-state companies from running pharmacies that offer lower-cost options.
However, PCMA did not have projections on how Arkansas's law will affect drug prices in the state.
Zoom in: The lawsuit claims that Arkansas's policy gives preferential treatment to pharmacies based in the state, violating the Constitution's dormant Commerce Clause and Privileges and Immunities Clause. It also says the law improperly declares PBMs guilty of antitrust violations and delivers punishment without a trial.
"Rather than innovating and attempting to compete with PBM pharmacies on the merits, many independent pharmacies have turned to state lawmakers to manipulate the market with the heavy hand of government, to artificially tip the scales of competition in their favor," the complaint alleges.
Arkansas Gov. Sarah Huckabee Sanders (R) has said the law is necessary to hold PBMs accountable for anticompetitive actions.
Lawmakers at the state and federal level are increasingly questioning large pharmacy benefit managers like CVS Caremark, Express Scripts and Optum Rx's outsize role in the pharmaceutical supply chain and whether they're contributing to high drug prices.
Between the lines: PCMA's complaint notes that an earlier version of the bill would have required Walmart — Arkansas's largest company — to close its pharmacies as well, since the company administers its own pharmacy benefits for employees.
State legislators amended the policy before it was passed so Walmart would no longer be subject to the law.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Rachel Maddow Says the ‘Interesting Question' About Trump Is ‘What the Country Lets Him Get Away With'
Rachel Maddow belittled Donald Trump on Monday night whilechatting with her MSNBC colleague Lawrence O'Donnell, declaring that Trump's latest 'dictator' actions have made him 'very boring.' Not that she argued the current situation isn't serious, only that Trump is acting like, as she joked, a blonde copy of the extremely corrupt former Italian Prime Minister Silvio Berlusconi. But Maddow also clarified that the 'really interesting question' about all of this is 'what the country lets him get away with. The comment came up at the start of 'The Last Word with Lawrence O'Donnell,' as the duo discussed how Trump's current actions — calling in the national guard over the objections of California Gov. Gavin Newsom to quell lawful protests — are the exact opposite of what he said he could legally do in 2020 during the George Floyd protests. At that time, Trump said it would be unlawful for him to do so without a request of a state governor. 'I mean the difference,' Maddow said, is that 'he's decided that he's throwing it all out. You know, 'dictator on day from day one,' and you know, going to terminate parts of the Constitution. And he's decided that he doesn't matter what Congress does, and it doesn't matter what the courts do, that he's just the strong man he's going to be.' 'He's decided to throw out all the rules,' Maddow continued. 'The thing that that has done, as far as I'm concerned, is make him very boring, because it's like it's all on the table. We know exactly what he's doing. We know exactly what his intentions are. He's blonde Berlusconi. This is, I mean, he's just trying to do the same thing all the other strongmen and would be dictators do all over the country. I think the really interesting question is, what the country lets him get away with, and we're seeing a really interesting test of that right now, all over the country, especially this week.' Later in the discussion, Maddow argued that the issue isn't that Trump has changed his mind over what he can and cannot legally do, it's that 'we can probably intuit that what he's being told is, 'yeah, it's illegal, therefore, go do it.' I think that the more laws he breaks, the more blatantly unconstitutional things he both proposes and tries, I think the more they think power accrues to him, because he's less constrained by things that don't actually stop him.' 'And so ultimately, I mean, the courts are pushing him back. Congress, to a certain extent, is pushing him back a little bit, although I think a little bit more than they're giving credit for, but mostly it's people pushing him back. He's deeply, deeply, deeply unpopular and underwater on every issue, and he is absolutely panicked by the protests against him, to the point where he's already playing the biggest cards that he's gotten. He's not even six months into this term. I just think, I think we're getting the test really early, and I think that he's failing.' Maddow later noted that Trump's rhetoric and response to the protests is vastly out of proportion with the scope of them, but 'even if these protests were 100 times the size that they are, there still wouldn't be an operational reason to bring in active duty troops or federalized National Guard. I mean, it's just, it's not, it's not that sort of thing. This is obviously not operationally necessitated, right, in terms of the security of the city. He's doing this because he's panicking and thinks that he looks weak, and therefore he has to do something that seems strong.' 'And so we will have tanks destroying the streets of Washington this Saturday, and we will have National Guardsmen and active duty US Marines standing around Los Angeles, wondering what their what this has to do with their military careers. And it's all because he has no freaking idea how to deal with this politically. And he's absolutely panicking about the, I think, trenchant and joyful and sustainable opposition against him.' Maddow added. Watch the whole conversation below: The post Rachel Maddow Says the 'Interesting Question' About Trump Is 'What the Country Lets Him Get Away With'| Video appeared first on TheWrap.
Yahoo
3 hours ago
- Yahoo
Immigration raids confirmed in Orange County, congressman says ICE is ‘inciting fear'
U.S. Immigration and Customs Enforcement (ICE) raids took place in Orange County on Monday, officials confirmed. 'We are aware of ongoing immigration enforcement activity in the Santa Ana Civic Center area,' announced the Santa Ana Unified School District in an X post Monday evening. 'We do not condone actions that disrupt our community or separate families.' The Santa Ana Police Department and city officials also issued a joint statement on Instagram, acknowledging the ICE activity and stating that they are aware the news causes 'fear and uncertainty' for community members. L.A. Protests: Live Updates A spokesperson for the police department told KTLA that they were made aware of the ICE activity in their city because of 'social media posts.' SAPD, similar to most other police departments in Southern California, has reinstated its policy of not participating in immigration enforcement efforts. Although federal or law enforcement officials have not revealed the specifics of the ICE raids, Rep. Lou Correa (D-Orange County) said he received reports that individuals in his district were being arrested for 'doing nothing but standing outside and being profiled.' Upon landing in Washington, D.C. on Monday, Rep. Correa issued a statement about the raids, saying, 'It's unacceptable, and shocking, that this is happening in my hometown of Santa Ana.' 'It appears agents are picking up hard-working, law-abiding taxpayers. Why?' read Rep. Correa's press release, which also shared that the congressman would be immediately returning to O.C. 'Yesterday, everything was good and boring in Santa Ana. Everyone was going to church and going to the grocery store—it was a beautiful day. Today ICE is coming in to raid and disrupt our neighborhood? These are the parents whose children went to school with my kids. They take care of our elderly, mow our lawns, and are a part of the fourth largest economy in the world. This is inciting fear in our community,' continued the release. Rep. Correa also urged those who resist 'unjust, illegal activity' to do so peacefully, referring to the lessons taught by Gandhi and Martin Luther King Jr. Glendale terminates 'divisive' detainee holding contract with ICE 'You don't take on a tank or an M16 by walking into it—you do it in a smart, legal, and safe way. Our future depends on a strategic, effective response. One that protects our kids, their future, and their rights.' The congressman concluded his statement by asking the federal government to use restraint and 'common sense' to adhere to the Constitution and provide everyone with due process. In a Monday evening press conference with Los Angeles Mayor Karen Bass, she shared these values, saying, 'Stop the raids, and give the power back to our Governor.' SAUSD offered resources to the community, advising individuals to contact their local school or visit if they or someone they know needs support or information. 'We stand with our community – today and always.' The city of Santa Ana also provided resources, saying, 'If you or someone you know has questions or concerns, contact your local Congressional office and visit the City's Know Your Rights webpage at for resources and information.' Rep. Correa also encouraged anyone with questions about their legal rights to reach out to his office. For more resource information, click here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


Bloomberg
3 hours ago
- Bloomberg
Chinese Firm Halts Production of Controversial Alzheimer's Drug
A Chinese company that developed the country's first homegrown Alzheimer's disease therapy has suspended production of the drug, a local media report said, casting doubts on the treatment's future nearly five years after its approval. Shanghai's Green Valley Pharmaceutical Co. informed employees of the production halt in an internal notice at the end of May, Yicai reported Monday, citing a person it didn't identify. The company failed to renew the drug's license and is currently waiting for regulatory review, the outlet reported, citing the source.