LITTLE ROCK, Ark. (AP) — On Thursday, CVS and Express Scripts requested that a federal judge halt a new law targeting pharmacy benefit managers.
managing or running pharmacies in Arkansas
, challenging the initial such limitation imposed by a state.
The legal actions occur slightly more than a month following Governor Sarah Huckabee Sanders’ signing of the bill that restricts pharmacy benefit managers, commonly referred to as PBMs. These entities manage prescription medication coverage for large clients such as health insurance providers and businesses offering coverage programs.
Proponents of the Arkansas legislation argue that it is necessary due to PBMs compelling independent pharmacies, particularly those located in rural regions, to shut down.
However, in their legal complaint, ExpressScripts argued that this action would result in “severe repercussions” and lead to numerous pharmacies across the state being forced to shut down.
“And this will lead to widespread confusion for people in Arkansas regarding where and how they can obtain essential prescription drugs, permanently disrupting the relationships that patients have built over time with their pharmacists and the pharmacy-supplied home visit nurses,” the company’s lawsuit stated.
In a different legal case, CVS argued that the new legislation “constitutes an attack on unrestricted trade among states and the basic tenets of equitable market competition that form the backbone of the Federation.”
CVS, which aired television advertisements encouraging Senator Sanders to reject the bill, stated they would be forced to shut down their 23 retail pharmacies within the state should the legislation come into effect.
On Thursday, Attorney General Tim Griffin supported the legislation, stating that PBMs “hold disproportionate influence, enabling them to generate significant profits at the consumer’s detriment.”
“Thanks to Act 624, Arkansas is taking a stand against PBMs for the benefit of consumers, and I am committed to robustly defending this legislation,” Griffin stated.
Several states, including Arkansas, have seen their lawmakers propose regulations for PBMs, and recently, a coalition of attorneys general asked Congress to enact laws akin to those established in Arkansas.
