Could your CVS be closing? New Arkansas Law puts all 23 stores at risk.
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If you're one of the more than 340,000 Arkansans who depend on CVS for medications, convenience items, or everyday essentials, a major change could be coming.
A sweeping new law targeting Pharmacy Benefit Managers (PBMs) has sparked warnings that every CVS store in the state could be forced to close by 2026.
Breaking down what this law means, why CVS is pushing back, and how this could reshape access to prescription care in Arkansas—and beyond.
CVS Health, one of the nation's largest pharmacy chains, says it is reviewing its options after Arkansas passed Act 624, a law set to take effect January 1, 2026.
The legislation prohibits PBMs—companies that negotiate drug prices—from owning or operating pharmacies in the state.
CVS owns CVS Caremark, one of the country’s largest PBMs. This dual role, now banned under Arkansas law, has put all 23 CVS pharmacy locations in the state at risk of closure.
For now, CVS says operations are continuing—but the future remains uncertain.
Governor Sarah Huckabee Sanders and Attorney General Tim Griffin have both criticized PBMs for prioritizing profits over patients.
They argue that companies like CVS use their influence to favor their own pharmacies and undercut smaller, independent drugstores.
"These massive corporations are attacking our state because we will be the first in the country to hold them accountable," said Sanders, calling PBMs exploitative and anticompetitive.
Supporters of the law say Act 624 will eliminate conflicts of interest and encourage fair competition, helping level the playing field for independent pharmacies—especially in rural areas.
CVS argues that the law will do the opposite of what it intends. In a statement, the company warned that Act 624 will raise prescription costs, limit patient access, and undermine pharmacy care.
The company also claimed:
It reimburses independent pharmacies in Arkansas at rates 61% higher than it pays its own stores.
There are now more independent pharmacies in the state than there were in 2019.
A spokesperson told Newsweek: “Facts should matter more than rhetoric… Small businesses, employers, health plans and others are going to have to pay more for prescription drugs starting next year because of this new law.”
At the heart of the fight is a fundamental question: Can a company fairly negotiate drug prices while also profiting from dispensing those drugs?
John Vinson, CEO of the Arkansas Pharmacists Association, says no. He called the new law “pro business and pro fair competition,” arguing it removes conflicts of interest and puts patients first.
For CVS customers in Arkansas, here’s what to expect:
Though Arkansas is the first to enact this type of law, other states are watching. PBMs—dominated by CVS Caremark, Cigna’s Express Scripts, and UnitedHealth’s OptumRx—control much of the US drug supply chain, but operate with little transparency.
A 2022 report from the Center for American Progress found CVS alone held 33% of the PBM market.
Critics say these companies often enrich themselves while keeping patients and insurers in the dark about pricing formulas and rebates.
If Arkansas’ model succeeds, other states may follow suit. If it fails, it could be used as an argument to preserve the current system.
Read next:
What do you think about Act 624? Are you worried about losing access to your local CVS? Do you support independent pharmacies, or trust national chains more? We want to hear from you. Share your thoughts in the comments below—and help guide how healthcare works in your neighborhood.
A sweeping new law targeting Pharmacy Benefit Managers (PBMs) has sparked warnings that every CVS store in the state could be forced to close by 2026.
Breaking down what this law means, why CVS is pushing back, and how this could reshape access to prescription care in Arkansas—and beyond.
CVS Health, one of the nation's largest pharmacy chains, says it is reviewing its options after Arkansas passed Act 624, a law set to take effect January 1, 2026.
The legislation prohibits PBMs—companies that negotiate drug prices—from owning or operating pharmacies in the state.
CVS owns CVS Caremark, one of the country’s largest PBMs. This dual role, now banned under Arkansas law, has put all 23 CVS pharmacy locations in the state at risk of closure.
For now, CVS says operations are continuing—but the future remains uncertain.
Could your CVS be closing? New Arkansas Law puts all 23 stores at risk. Image source: Iris Yan / Unsplash
Governor Sarah Huckabee Sanders and Attorney General Tim Griffin have both criticized PBMs for prioritizing profits over patients.
They argue that companies like CVS use their influence to favor their own pharmacies and undercut smaller, independent drugstores.
"These massive corporations are attacking our state because we will be the first in the country to hold them accountable," said Sanders, calling PBMs exploitative and anticompetitive.
Supporters of the law say Act 624 will eliminate conflicts of interest and encourage fair competition, helping level the playing field for independent pharmacies—especially in rural areas.
CVS argues that the law will do the opposite of what it intends. In a statement, the company warned that Act 624 will raise prescription costs, limit patient access, and undermine pharmacy care.
The company also claimed:
It reimburses independent pharmacies in Arkansas at rates 61% higher than it pays its own stores.
There are now more independent pharmacies in the state than there were in 2019.
A spokesperson told Newsweek: “Facts should matter more than rhetoric… Small businesses, employers, health plans and others are going to have to pay more for prescription drugs starting next year because of this new law.”
At the heart of the fight is a fundamental question: Can a company fairly negotiate drug prices while also profiting from dispensing those drugs?
John Vinson, CEO of the Arkansas Pharmacists Association, says no. He called the new law “pro business and pro fair competition,” arguing it removes conflicts of interest and puts patients first.
For CVS customers in Arkansas, here’s what to expect:
- No immediate closures: All stores are still operating—for now.
- Uncertain future: CVS is considering its legal and business options.
- Potential disruption: If the stores close, hundreds of thousands may need to find new pharmacies, especially concerning rural areas with fewer alternatives.
- Unclear cost impact: CVS warns of higher prices, but advocates say more competition will help lower costs in the long run.
Though Arkansas is the first to enact this type of law, other states are watching. PBMs—dominated by CVS Caremark, Cigna’s Express Scripts, and UnitedHealth’s OptumRx—control much of the US drug supply chain, but operate with little transparency.
A 2022 report from the Center for American Progress found CVS alone held 33% of the PBM market.
Critics say these companies often enrich themselves while keeping patients and insurers in the dark about pricing formulas and rebates.
If Arkansas’ model succeeds, other states may follow suit. If it fails, it could be used as an argument to preserve the current system.
Read next:
- Why 23 CVS stores are closing—and what it means for your prescriptions
- What happened at CVS? Company responds to customer concern following major misstep
