I wonder how much stock this judge has in CVS, United Health Care or other major PBM’s
Federal judge blocks implementation of Arkansas Act 624 banning PBMs from owning pharmacies
The U.S. District Court for the Eastern District of Arkansas Central Division has granted a preliminary injunction to stop the implementation of Act 624.
Act 624 states that, “[a] pharmacy benefits manager shall not acquire direct or indirect interest in, or otherwise hold, directly or indirectly a permit . . . for the retail sale of drugs or medicines in this state.”
The court order states, “In simple terms, Arkansas lawmakers have decided that they no longer want to allow PBMs to own or operate pharmacies in the state. Act 624 becomes effective on January 1, 2026, and plaintiffs, an industry trade association and various PBMs, are suing to stop it from taking effect. In the complaints, plaintiffs allege that Act 624 violates: (1) the Commerce Clause; (2) the Privileges and Immunities Clause; (3) the Supremacy Clause because it is preempted by (a) TRICARE, (b) ERISA, and (c) Medicare; (4) the Bill of Attainder Clause; (5) the Takings Clause; and (6) the Equal Protection Clause. Plaintiffs are now moving for a preliminary injunction to prevent enforcement of Act 624 until final disposition.”
“Having reviewed the briefs and conducted a hearing on July 23, the motions for a preliminary injunction are granted and Arkansas Act 624 is enjoined from taking effect because it likely violates the Commerce Clause and it is likely preempted by TRICARE,” the court order states.
The court order continued, “Accordingly, defendants Rodney Richmond, Brian Jolly, Debbie Mack, Lenora Newsome, Clint Boone, Walter Lyn Fruchey, Harold H. Simpson, Beth Ann Davenport, John C. Kirtley, their agents and successors in office, and all persons acting in concert with them are hereby ordered to refrain from enforcing Act 624 until final disposition.”
A CVS Health spokesperson provided DSN with the following statement, “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.”
On May 29, 2025, CVS Health filed a lawsuit to block Arkansas Act 624, calling it “a harmful law that will shut down 23 CVS Pharmacy locations, eliminate hundreds of jobs and drive-up costs for Arkansans. This unconstitutional law puts local politics ahead of patients, restricting their access to life-saving medications and undermining fair competition.”
Filed under: General Problems
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