Court blocks Arkansas law barring PBMs from operating pharmacies – Becker’s Hospital Review | Healthcare News

A federal judge has blocked a new Arkansas law that would have barred pharmacy benefit managers from owning or operating pharmacies in the state. 

On July 28, U.S. District Judge Brian Miller granted a preliminary injunction preventing Arkansas Act 624 from taking effect, siding with PBMs including CVS Caremark and Cigna’s Express Scripts, who argued the law violated the Constitution’s Commerce Clause, according to court documents reviewed by Becker’s. 

In the order, the judge found the law’s intent to protect locally operated pharmacies over PBM-affiliated pharmacies undermined its constitutionality. He wrote that the law also violates federal Tricare statutes, which govern military health benefits, writing that it interferes with national contracts for prescription drug services. 

The ruling comes after CVS said the state law would force the chain to shut down 23 of its retail locations in Arkansas. The law, which was set to go into effect Jan. 1, will remain on hold pending further court proceedings.