Arkansas seeks to kick big pharmacy middlemen out of drugstore business

Arkansas's Act 624 bars pharmacy benefit managers from owning pharmacies in the state, and the Eighth Circuit heard arguments Tuesday on whether that violates the Dormant Commerce Clause by targeting out-of-state companies. The state's attorney argued the law applies to any vertically integrated pharmacy regardless of location, while PBM attorneys called it textbook protectionism, quoting a legislative sponsor who said explicitly he didn't want big out-of-state companies taking business from local pharmacies.

PBM attorneys warned the ban could force roughly one in five Arkansans to find new pharmacies, closing around 50 locations and disrupting five to six million prescriptions a year. A federal judge already blocked the law from taking effect in January 2026, finding it likely discriminates against interstate commerce.

Independent pharmacies back the law as a check on PBM conflicts of interest, while judges pressed both sides on where the line falls between legitimate anti-competitive regulation and protectionism dressed up as patient safety.

The full dispatch is available from the source below.