Federal judge blocks Arkansas law regulating pharmacy benefit managers

Context: PBMs are companies that negotiate drug prices between pharmacies and insurance companies.

• Four PBMs, including the three largest in the nation, and the Pharmaceutical Care Management Association filed four challenges to Act 624 of 2025. The U.S. District Court for the Eastern District of Arkansas combined the four complaints into one case.

What they're saying: U.S. District Judge Brian Miller said in his order Monday that the law likely violates the U.S. Constitution's commerce clause because it "appears to overtly discriminate against plaintiffs as out of state companies and the state has failed to show that it has no other means to advance its interests."

Flashback: The law drew sharp criticism from the trade group representing PBMs, which said it would force the closure of dozens of retail pharmacies, suspend home delivery of prescription drugs and restrict access to specialty pharmacies.

• CVS in April threatened to close all 23 of its retail pharmacies in Arkansas.

What's next: Arkansas Attorney General Tim Griffin plans to appeal the ruling, AP reported.