LITTLE ROCK, Ark. — A federal judge has temporarily blocked Arkansas' Act 624 of 2025, a law that would have prohibited pharmacy benefit managers (PBMs) from owning pharmacies in the state. U.S. District Judge Brian Miller issued a preliminary injunction on July 28, 2025, stating that the law likely violates the U.S. Constitution’s Commerce Clause and may be preempted by federal veterans’ health care regulations.
The law, signed by Governor Sarah Huckabee Sanders, was set to take effect on August 5. It was aimed to prevent PBMs—companies that manage prescription drug benefits for insurers and employers—from holding pharmacy licenses in Arkansas. The state argued the law was necessary to protect independent, especially rural, pharmacies from being driven out of business by vertically integrated PBMs like CVS and Express Scripts.
However, Judge Miller found that the law appeared to discriminate against out-of-state companies and that Arkansas had not demonstrated that it lacked other means to achieve its goals. He noted that the law’s stated purpose—to eliminate business tactics harming local pharmacies—suggested protectionist intent.
CVS and Express Scripts, among others, had sued the state, arguing the law would harm consumers and force closures of retail pharmacies. CVS, for example, claimed it would have to shut down its 23 Arkansas locations if the law were enforced.
"We’re pleased with the Court’s decision to grant a preliminary injunction to stop the implementation of Act 624. We continue to be focused on serving people in Arkansas and are actively looking to work together with the state to reduce drug prices and ensure access to pharmacies," CVS said in a statement.
The case is expected to proceed to trial, and Arkansas Attorney General Tim Griffin has indicated plans to appeal the ruling.
