Little Rock, Ark. – State officials are pressing the 8th Circuit Court of Appeals to overturn a temporary injunction that blocks enforcement of Act 624, the Arkansas law that bars pharmacy benefit managers (PBMs) from owning pharmacies within the state.
Why the law matters to Arkansans
Act 624, passed in 2025, was the nation’s first attempt to curb the market power of PBMs such as CVS Caremark, Express Scripts and OptumRx. Supporters say PBMs set drug reimbursement rates for insurers, creating a conflict of interest that forces independent pharmacies to sell drugs at a loss while PBM‑owned pharmacies receive higher payments.
“It’s an antitrust concern. We want to protect health and safety and remove a conflict of interest that causes prescription drugs to be overcharged by billions of dollars,” said John Vinson, CEO of the Arkansas Pharmacists Association.
Federal court blocks the law, state appeals
After the law’s passage, the PBMs sued, and a federal judge issued a preliminary injunction that temporarily halted the ban on PBM‑owned pharmacies. Arkansas appealed the decision to the 8th Circuit, where a hearing was held in September. The appellate court has indicated it will rule soon on whether to uphold the injunction.
PBMs argue that the law interferes with interstate commerce, putting out‑of‑state companies at a disadvantage. Vinson countered, “Their arguments are that this law was strictly passed as a protectionism of small pharmacies in Walmart, because those are Arkansas‑based companies,” noting that Walmart itself contracts with a PBM rather than acting as a PBM.
Potential impact on state antitrust authority
Vinson warned that if the injunction remains, the precedent could erode the ability of all 50 states to enforce antitrust protections. “If the PBMs were to prevail, those protections and that standard and those rights of states would be ripped away,” he said.
The case has broadened into a debate over states’ rights to regulate monopolistic practices that threaten public health and safety. The Federal Trade Commission has previously highlighted PBM practices that underpay independent pharmacies while overpaying their own outlets, and an FTC report cited a PBM selling a cancer drug for $19,000 that costs $97 at a retail pharmacy.
What Arkansas residents should watch
While the legal battle continues, the outcome could affect drug pricing and pharmacy availability across the state. Independent pharmacists fear that without the law, PBMs could continue to pressure patients into using PBM‑owned pharmacies, limiting choice and potentially raising costs.
State officials say they will continue to defend Act 624, emphasizing that preserving state antitrust authority is essential to protecting families, small businesses, and the broader community from corporate monopolies.
Original reporting: KATV Little Rock (local) — read the source article.
