All 23 CVS Pharmacy locations in Arkansas are at risk of closing following the passage of an obscure new state law.  

Act 624, a piece of legislation, was officially enacted last month by Governor Sarah Huckabee Sanders. This law will prevent Pharmacy Benefit Managers (PBMs) from owning or managing pharmacies beginning in 2026.

This would make Arkansas the pioneer state in disallowing the vertical integration model between PBMs and pharmacies — a business approach practiced by CVS Health via its division, CVS Caremark.

Supporters say the law addresses longstanding concerns about market competition and transparency in the pharmaceutical supply chain.

Governor Sanders called the measure necessary to curb what she described as ‘abusive’ PBM practices.

“These large corporations are challenging our state because we will be the nation’s first to hold them accountable for their anti-competitive practices,” Sanders mentioned in a press release in April.

PBMs act as intermediaries between drug manufacturers, insurers and pharmacies, negotiating prices and determining reimbursement rates.

Critics argue that PBMs who also own pharmacies can steer patients to their own outlets while under-reimbursing independent competitors.

John Vinson, CEO of the Arkansas Pharmacists Association, said the law aims to restore fairness in the marketplace.

‘The Arkansas Pharmacists Association is supportive of Act 624,’ Vinson said. 

All 23 CVS Pharmacy locations in Arkansas are at risk of closing following the passage of a new state law

The legislation, known as Act 624, was signed into law last month by Governor Sarah Huckabee Sanders (pictured)

‘Act 624 is pro-business and pro-fair competition as it will support a market to remove conflicts of interest and stop price setters from also being price takers in a way that raises drug prices while also squeezing out market competitors.’

CVS Health warns the law could have serious consequences for patients and health plans across the state. 

A company spokesperson told Newsweek the legislation will increase drug costs and disrupt care for over 340,000 CVS pharmacy patients in Arkansas.

‘All of our 23 Arkansas stores are currently open and will continue to operate for the immediate future. We’re doing everything we can to continue to provide pharmacy services to our 340,000+ Arkansas pharmacy patients,’ the spokesperson said Tuesday.

CVS also disputes claims that PBMs harm independent pharmacies, noting that there are currently 14 more independent pharmacies in Arkansas than in 2019.

The company also argued that its PBM reimburses independent pharmacies at a higher rate than CVS locations in 61 percent of cases.

‘Facts should matter more than rhetoric, and a simple economic analysis could have avoided all this chaos,’ the spokesperson added. 

‘Small businesses, employers, health plans and others are going to have to pay more for prescription drugs starting next year because of this new law.

The legislation makes Arkansas the first state to prohibit vertical integration between PBMs and pharmacies – a business model used by CVS Health through its subsidiary, CVS Caremark

‘Proponents of the bill have consistently made misleading claims about the need and rationale for this legislation, while downplaying the devastating impact it will have on patient care.’

PBMs have faced increasing scrutiny over opaque pricing practices, according to the Center for American Progress, which claims that CVS Caremark controlled roughly one-third of the PBM market in 2022, with other health giants such as Cigna and UnitedHealth close behind.

With Act 624 set to take effect on January 1, 2026, CVS says it is reviewing its options in the state.

While no closures have been confirmed, the future of its Arkansas locations remains uncertain.