Pharmacy benefit manager Express Scripts has filed a federal lawsuit aiming to block a new Arkansas law that bans PBMs from owning or operating pharmacies.
The law, known as Act 624, was signed by Governor Sarah Huckabee Sanders in April and is set to take effect in 2026.
If implemented, the legislation would make Arkansas the first state to prohibit vertical integration between PBMs and pharmacies, a model used by Express Scripts and CVS Caremark.
Supporters of the law say it will promote transparency and competition in the pharmaceutical supply chain, while critics warn it could raise drug costs and disrupt care for hundreds of thousands of patients.
In its suit, filed in Little Rock, Express Scripts argues that Act 624 violates the US Constitution by interfering with interstate commerce and improperly targeting specific companies.
The company called the law “a radical departure from the norm” and warned it would have severe consequences for patients, employers, and health plans.
The legal challenge comes amid intensifying national scrutiny of PBMs, which act as middlemen between insurers, drugmakers, and pharmacies.
Arkansas lawmakers and pharmacists have accused PBMs of using their ownership of retail chains to undercut independent competitors and manipulate reimbursement rates.
The outcome of the lawsuit could have sweeping implications for how PBMs operate across the US, potentially setting a legal precedent that affects other states considering similar legislation.
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