Pharmacy Benefit Managers Challenge Arkansas Law, Citing Unconstitutional Restrictions
Two major pharmacy benefit managers, “CVS Health” and “express Scripts,” have initiated legal action against a new Arkansas law that limits the ability of PBMs and their associated pharmacies to dispense medications within the state. The companies argue the law is unconstitutional and will negatively impact patient access.
In separate lawsuits filed on May 29, “CVS Health” and “Express Scripts” are challenging an Arkansas law that places restrictions on pharmacy benefit managers (PBMs) and their affiliated pharmacies. The lawsuits contend that the law infringes upon their ability to dispense medications within the state.
Both “CVS Health” and “Express Scripts” assert that the Arkansas legislation is unconstitutional and will severely impede patient access to necessary medications, according to their respective news releases issued on May 29.
The companies’ complaints, lodged in federal court on May 29, allege violations of the Dormant Commerce Clause and equal protection rights.
potential Impact on Pharmacies and Jobs
“…the law could force the closure of 23 of its pharmacy locations, eliminate more than 500 jobs and impact affiliated pharmacies under Express scripts.”
“CVS” stated that the law could potentially force the closure of 23 of its pharmacy locations, resulting in the elimination of over 500 jobs. The company also anticipates an impact on pharmacies affiliated with “Express Scripts.”
“Express Scripts” claims that the law would negatively affect access to home-delivered prescriptions, fertility treatments, and complex medications required for conditions such as cancer and spinal muscular dystrophy.
Concerns for Rural Areas and Drug Costs
Both companies have voiced concerns that the law will disproportionately affect rural areas,where access to pharmacies is already limited. They also argue that restricting PBM-affiliated pharmacies could lead to increased drug costs for both employers and patients by reducing competition within the state’s pharmacy market.
The “Arkansas Department of Health” declined to comment when contacted by Becker’s.
