Arkansas Pharmacists Association Applauds Senate Committee Vote To Ban PBMs From Owning Pharmacies in State
Landmark Bill to Protect Patients Advances to Full Senate for Final Consideration
Little Rock, Ark. 4/8/2025 — The Arkansas Pharmacists Association (APA) on Tuesday, April 8, 2025 commended the Arkansas Senate Insurance & Commerce Committee for advancing House Bill 1150, a bold and nation-leading measure that would prohibit pharmacy benefit managers (PBMs) from owning or operating pharmacies in the state.
The bill, co-sponsored by Rep. Jeremiah Moore, R-Clarendon, and Sen. Kim Hammer, R-Benton, would eliminate the deeply entrenched conflict of interest in which PBMs set drug prices and profit from pharmacy ownership. HB1150, which the full House approved on April 3, now moves to the full Arkansas Senate for final legislative action.
“This is a major victory for Arkansas patients, local pharmacies and the integrity of our health care system,” said John Vinson, CEO of the Arkansas Pharmacists Association. “The committee’s approval of HB1150 sends a strong message that our state will no longer tolerate corporate middlemen enriching themselves at the expense of patient care.”
If enacted, HB1150 would make Arkansas the first state in the country to prohibit PBMs from holding pharmacy licenses. It requires PBMs with existing pharmacy ownership to divest by January 2026.
The legislation comes in response to growing evidence, including recent reports from the Federal Trade Commission, that PBMs have used their dual role to inflate drug prices and steer patients to their affiliated pharmacies — often forcing the closure of local, non-PBM-affiliated community pharmacies.
“If we want to protect patient choice, lower drug costs and support local businesses, then ending PBM ownership of pharmacies is essential,” Vinson said. “This bill ensures Arkansans will continue to have access to the quality care they deserve — delivered by trusted local pharmacists, not dictated by out-of-state corporations.”
PBMs are the industry middlemen that set prices for prescription medications. A 2024 report by the Federal Trade Commission showed how PBMs are causing patients to see significantly higher drug costs with fewer choices and worse care. Another FTC report released in January continued to show abuses by three of the largest PBMs — Optum RX, CVS Caremark and Express Scripts — which hiked the prices of specialty drugs for heart disease and cancer by thousands of percent to generate a combined $7.3 billion in revenue from 2017 to 2022.
Local pharmacies in Arkansas have struggled amid inadequate reimbursement rates from PBMs — rates that often fall near or below the National Average Drug Acquisition Cost (NADAC). This has forced many pharmacies unaffiliated with PBMs to limit services, reduce staffing or close. These closures threaten public health, as community pharmacies provide critical services such as managing drug interactions, administering specialty medications and supporting patients with complex health needs.
“Arkansas has always been a trailblazer in standing up to unfair PBM practices — from Act 900 to this bold new legislation,” Vinson said. “We are proud of the lawmakers standing with patients and pharmacists to fight corporate abuse in our drug supply chain.”
APA continues to urge Arkansans to support HB1150 by contacting their state senators and signing the petition at RxReformNow.com. So far, more than 8,100 Arkansans have signed the petition, asking Arkansas lawmakers to stop PBM middlemen from owning pharmacies and driving up patient costs.
About the Arkansas Pharmacists Association
The Arkansas Pharmacists Association (APA) is the voice of Arkansas pharmacists and is dedicated to promoting public health by advancing the professional and business environment for its members to be successful and fulfilled in serving patients. Founded in 1882, the APA represents over 2,300 members consisting of pharmacists, pharmacy students, pharmacy technicians and members of the industry who support the objectives of the Association. The APA seeks to empower pharmacists to be leaders in integrated healthcare and patient care management as medication experts. To learn more about the Arkansas Pharmacists Association, visit arrx.org.
This would be April 8