HB 1150 in Arkansas: A Closer Look at the Nation’s First PBM Pharmacy Ownership Ban

Arkansas may soon become the first state in the U.S. to prohibit PBMs from owning or operating retail pharmacies. House Bill 1150 (HB 1150) passed the Arkansas Senate and is currently awaiting the governor’s signature. If enacted, the law would take effect on January 1, 2026.

What HB 1150 Does

HB 1150 prohibits PBMs from holding a pharmacy license or owning an interest in a licensed pharmacy in Arkansas. This would impact vertically integrated companies—such as CVS Health, which operates CVS Caremark (a PBM) and CVS Pharmacy (a retail chain).

Legislative Intent

The bill was introduced in response to concerns about potential conflicts of interest and anticompetitive practices that may arise when PBMs both administer pharmacy benefits and operate pharmacies. Supporters of the bill state that separating these roles could improve transparency and reduce pricing distortions.

Opposition and Industry Response

PBMs and associated entities have expressed concerns about the bill’s impact. CVS Health, for example, has stated that the bill could result in the closure of its retail pharmacy locations in Arkansas, affecting patient access and pharmacy jobs. Critics of the bill argue that it could increase drug costs and disrupt patient care continuity. 

Potential Impact

If signed, HB 1150 could:

• Prevent PBMs from operating or owning pharmacies in Arkansas
• Require existing PBM-owned pharmacies to divest or close by the January 1, 2026 deadline
• Serve as a precedent for similar legislation in other states

Implementation Timeline

• Governor’s decision: Pending as of April 2025
• Effective date (if signed): January 1, 2026

National Context

HB 1150 is the first bill of its kind to be passed by a state legislature. It comes amid broader scrutiny of PBM practices nationwide, including federal investigations and proposed reforms relating to transparency, pricing, and market structure.

Exploring the Potential Impacts of HB 1150

As Arkansas moves closer to implementing HB 1150, several questions remain for stakeholders across the healthcare and pharmacy sectors:

• Will this lead to a more level playing field for independent pharmacies, or will fill volume simply consolidate among a smaller group of independent operators?
• Could this policy improve pricing transparency and patient access, or might it unintentionally limit pharmacy availability in certain areas?
• While the bill addresses concerns about vertical integration and market dominance, will it ultimately serve the long-term interests of consumers?
• Is this a necessary state-level intervention in response to federal inaction, or could it create new challenges for continuity of care and business operations?

These are the types of questions that will likely shape how other states, regulators, and industry players respond in the months ahead.

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