CVS Health Files Lawsuit Against Arkansas Over Pharmacy Ownership Law
CVS Health has taken legal action against the state of Arkansas in an effort to prevent the closure of all 23 CVS drugstores in the state. The healthcare company is challenging legislation known as Act 624, signed into law by Republican Governor Sarah Huckabee Sanders, which prohibits pharmacy benefit managers (PBMs) from owning and operating pharmacies.
Act 624 is the first of its kind in the U.S. and targets the growing trend of vertical integration, where companies own health insurers and medical care providers. CVS, as the nation’s largest retail pharmacy operator, also owns Caremark and Aetna, making it a prime target of the new law.
In a statement regarding the lawsuit filed in U.S. District Court for the Eastern District of Arkansas, CVS expressed concerns about the impact of Act 624 on patients, job losses, and increased healthcare costs in the state. The company believes that the law prioritizes local politics over patient care and fair competition.
While Governor Huckabee’s office has not yet responded to the lawsuit, she has previously defended the law as a necessary measure to address what she perceives as abusive practices by PBMs. However, CVS argues that the legislation will limit patient options, raise medication costs, and disrupt access to healthcare, particularly in rural areas already facing shortages of medical professionals and facility closures.
CVS further contends that Act 624 is unconstitutional, violating the Dormant Commerce Clause, Equal Protection rights, and federal law. The company asserts its right to challenge the law in order to safeguard patient care and uphold principles of fair competition.
As the legal battle unfolds, the outcome will have far-reaching implications for the healthcare industry in Arkansas and potentially set a precedent for similar legislative actions in other states.
