CVS Sues Arkansas Over Law Banning PBM Ownership Of Pharmacies

Core Viewpoint - CVS Health has filed a lawsuit against the state of Arkansas to block Act 624, a law that the company claims would lead to the closure of all 23 CVS drugstores in the state and negatively impact patient access to medications [1][4]. Group 1: Legislation Details - Act 624, signed into law by Governor Sarah Huckabee Sanders, prohibits pharmacy benefit managers (PBMs) from owning and operating pharmacies, marking a first for any U.S. state [2]. - The law targets the growing trend of vertical integration in healthcare, where companies own both health insurers and medical care providers [2]. Group 2: Company Background - CVS Health is the largest retail pharmacy operator in the U.S. and owns Caremark, a major pharmacy benefits manager, as well as Aetna, the third-largest health insurance company with over 27 million subscribers [3]. Group 3: Company Position - CVS argues that Act 624 will lead to the closure of its pharmacies, resulting in job losses and increased costs for Arkansas residents, while also limiting patient access to essential medications [4][5]. - The company claims the law is unconstitutional, violating the Dormant Commerce Clause and Equal Protection rights, and asserts that it is necessary to challenge this policy to protect patient care and fair competition [6].