CVS Caremark Faces Lawsuit over Long-Distance Pharmacy Requirement in Arkansas
An Arkansas employee is suing CVS Caremark, alleging state law violations by requiring 70-mile pharmacy trips.
Why it matters: The case intensifies scrutiny of pharmacy benefit managers' (PBMs) impact on patient access and compliance with state regulations. In-house and compliance counsel face mounting pressure to address legal risks in managing employee benefits.
- An Arkansas plaintiff claims CVS Caremark forced prescription pickups 70 miles away, bypassing local options.
- The lawsuit is before the Eighth Circuit, testing Arkansas's authority to regulate PBMs.
- Arkansas enacted Act 624, banning PBMs from owning or operating pharmacies starting 2026.
- CVS and Express Scripts are suing to overturn Act 624, citing unconstitutional burdens on interstate commerce.
An Arkansas employee has escalated a lawsuit to the Eighth Circuit Court of Appeals, alleging that CVS Caremark, a major pharmacy benefit manager (PBM), violated state law by mandating prescription pickups at CVS locations up to 70 miles away, rather than allowing use of local pharmacies.
- This challenge comes as Arkansas ramps up efforts to regulate PBMs through measures such as Act 624. Signed into law by Governor Sarah Huckabee Sanders on April 16, 2025, it will bar PBMs from owning or operating pharmacies in the state by January 2026.
- In response, CVS Health and Express Scripts filed lawsuits in May, arguing Act 624 is an unconstitutional restriction on interstate commerce that burdens out-of-state firms.
- The case stands against the backdrop of the 2020 Supreme Court Rutledge v. Pharmaceutical Care Management Association ruling, which affirmed states' rights to regulate PBMs, weakening ERISA preemption arguments.
Statements from stakeholders highlight the stakes. A spokesperson for Governor Sanders argued that PBMs are "attacking Arkansas in the courts because they’re worried other states will join... in fighting for patient access and affordable prescriptions." On the other hand, CVS says all 23 Arkansas stores remain open and "will continue to operate for the immediate future." Cigna’s legal chief contends the law "will do just the opposite" of its stated goals, warning of potential adverse impacts on prices and access.
The outcome could set important precedents for PBM practices, state regulatory power, and national employee benefit compliance strategies.
By the numbers:
- 70 miles — distance plaintiff allegedly required to travel for prescription pickups
- 23 — CVS pharmacy locations currently operating in Arkansas
- April 16, 2025 — Act 624 signed into law, banning PBM-owned pharmacies from 2026
Yes, but: Specific details of the employee's legal claims and CVS Caremark's direct response to the lawsuit remain undisclosed.
What's next: Act 624 banning PBM-owned pharmacies takes effect January 1, 2026, but ongoing litigation could impact enforcement.