29-05-2025
CVS sues Arkansas over new pharmacy law
ARKANSAS (KNWA/KFTA) — CVS Health has filed a federal lawsuit against a new Arkansas law that it says unfairly targets out-of-state pharmacies and breaks several parts of the U.S. Constitution.
The law, called House Bill 1150 (HB 1150), was signed by Governor Sarah Huckabee Sanders earlier this year and will start on January 1, 2026. It aims to regulate pharmacy benefit managers (PBMs) and stops pharmacies connected to PBMs from operating in Arkansas.
In the suit, CVS said the law is 'engineered to protect local pharmacy interests from competition with out-of-state pharmacies' like itself. The lawsuit, filed in federal court, says HB 1150 basically bans most PBM-affiliated pharmacies, including CVS, from selling prescription drugs in Arkansas.
PBMs act as middlemen between insurance companies, drug makers and pharmacies. They negotiate drug prices and manage pharmacy benefits for health plans.
Some big pharmacy chains, like CVS, have their own PBMs or work with them. HB 1150 only allows pharmacies connected to PBMs to operate in Arkansas if the PBM serves only its own employees' health plan — a rule that mainly benefits Walmart, the state's biggest employer, CVS claims in the suit.
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CVS also claims the law breaks the Dormant Commerce Clause because it discriminates against out-of-state businesses, the Equal Protection Clause because it treats similar businesses unfairly and the Supremacy Clause because it conflicts with federal laws like ERISA and Medicare rules.
CVS says if the law takes effect, it will have to close its 23 stores in Arkansas and stop its mail-order and specialty pharmacy services used by 'tens of thousands of Arkansans.'
HB-1150-Complaint-5-29-2025Download
The full lawsuit can be viewed above.
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