The Arkansas Senate Committee on Insurance and Commerce on April approved House Bill 1150, which seeks to ban pharmacy benefit managers (PBMs) from owning pharmacies. This legislation targets the vertical integration model used by large PBMs, which critics say allows them to drive up drug prices and disadvantage smaller, independent pharmacies by steering patients to their own mail-order pharmacies.
The three largest pharmacies that would be impacted in Arkansas are CVS, Express Scripts, and OptumRX - all of which are owned by PBMs. Together with Prime Therapeutics, they control 70% of the market.
Supporters argue the bill is necessary to prevent monopolistic practices and protect local pharmacies, while opponents, including CVS and business groups, warn it could lead to massive job losses and disrupt medication access for hundreds of thousands of Arkansans. The bill now moves to the full Senate for a vote.
Sen. Kim Hammer, R-Benton:
“These pharmacies often have no relationship with the patient or the prescribing doctor. It's not personal care, it's just a business model.”
Ashley Ellis, CVS pharmacy district manager:
“Let me be clear, if this bill passes I will lose my job. It will also cause hundreds of colleagues their jobs. Pharmacists and pharmacy staff that live and work in communities across Arkansas.”