Federal court places temporary hold on new law preventing PBM pharmacy ownership

LITTLE ROCK, Ark. – A decision in federal court on Monday blocks an Arkansas law from going into effect that blocks PBMs from owning pharmacies.

Act 624 of 2025 was passed in the most recent Arkansas legislative session and is scheduled to take effect on January 1, 2026. It prevented Pharmacy Benefit Managers (PBMs) from owning pharmacies in the state.

A PBM stands between prescription drug plans and pharmacies to set drug prices.

The Monday ruling places a preliminary injunction on Act 624 pending its full hearing before the court. In assigning the injunction, the judge stated the lawsuit seeking to overturn the law will likely succeed based on the act being preempted by the Commerce Clause and the TRICARE prescription claims.

In both cases, these are federal constructs that supersede state law. TRICARE is the pharmacy benefit program for uniformed service members, retired service members and their families.

The opinion also stated that Arkansas has other means to control PBMs than the act’s punitive effect.

Among the groups that lobbied against Act 624 was CVS, which stated that it would be forced to close 28 pharmacies in the state upon the law’s implementation. It filed the lawsuit against the act in May.

“We’re pleased with the Court’s decision to grant a preliminary injunction to stop the implementation of Act 624,” a CVS spokesperson said. “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.”

An appeal of the Monday ruling is expected.

“I respect the court’s decision and plan to appeal,” Attorney General Tim Griffin said.