LITTLE ROCK, Ark. – Governor Sarah Huckabee Sanders today signed HB1150, legislation banning Pharmacy Benefit Managers (PBMs) from engaging in anti-competitive practices by simultaneously owning pharmacies.
 
“For far too long, drug middlemen called PBMs have taken advantage of lax regulations to abuse customers, inflate drug prices, and cut off access to critical medications. Not anymore,” said Governor Sanders. “These massive corporations are attacking our state because we will be the first in the country to hold them accountable for their anticompetitive actions, but Arkansas has never been afraid to be a conservative leader for America.”
 
“PBMs have increasingly taken advantage of their position as price negotiators to benefit pharmacies they own and operate by distorting the market and crushing independent pharmacies. And Arkansas consumers lose because we pay higher prices for drugs we rely on every day. I led a bipartisan coalition of attorneys general calling on Congress to stop PBMs from owning pharmacies, and I applaud the General Assembly and Governor Sanders for making Arkansas the first state to stand up to PBMs,” said Attorney General Tim Griffin.
 
PBMs are massive corporations that negotiate drug prices between pharmacies and insurance companies. However, in recent years these PBMs have bought up pharmacies, allowing them to take advantage of the convoluted healthcare landscape, inflate pharmaceutical prices, and push competitors out of business. Today, the nation’s three largest PBMs process 80% of all prescriptions and bring in 70% of all specialty drug revenue.
 
Governor Sanders previously announced $1.5 million in fines against four major PBMs that routinely skirted Arkansas law – the largest pharmaceutical enforcement action in Arkansas history. Just this week, Arkansas Attorney General Tim Griffin led a bipartisan group of 38 other state and territory attorneys general in writing a letter to congressional leadership requesting action to prevent anti-competitive PBM practices.
 
”This legislation addresses what has become a blatant monopolization of pharmacy reimbursements by PBMs that control 80% of the market. Thanks to our Governor, Attorney General, and the majority of legislators, Arkansas remains the national leader in fighting back against the monopolistic action of bad actors in the PBM arena,” said Senator Kim Hammer.
 
“For decades we have been told PBMs lower costs for and improve access to medications. The truth is PBMs have been frequently paying themselves thousands of percent more than non PBM owned pharmacies and steering the most inflated prescriptions to their own pharmacies and away from Arkansas communities. Thank you to Governor Sanders for signing this important and historic patient access and medication affordability legislation,” said Senator Justin Boyd.
 
“For far too long, PBMs have steered Arkansans to enrich their own interest at the cost of patients and taxpayers. They have reimbursed themselves thousands of percentage points above the cost of medications while reimbursing their competitors at, or even below, cost. This is about justice for patients, taxpayers and local pharmacies. This legislation keeps PBMs from engaging in crony capitalism and protects Arkansas patients and taxpayers. No longer will they be able to pay themselves thousands of percentage points above the cost of medications, while paying their competitors at or below cost,” said Representative Jeremiah Moore.
 
“Being sick, no matter how severe, is a scary reality for most Arkansans. And people don’t want to be forced to be scared with their mailbox. HB1150 requires a choice between patients or PBM profits and Arkansas deserves to be cared for by providers who choose them. Thank you, Governor Sanders, for leading Arkansas and the nation in putting patients first,” said Representative Brandon Achor.
 
“This is a historic day for Arkansas patients, local pharmacies, and the integrity of our entire healthcare system, as the PBM fox will no longer guard the henhouse. No longer will we see cancer patients, children, and organ transplant survivors forced to out of state pharmacies owned by their pharmacy benefit manager at unaffordable prices. HB1150 will dramatically improve local access, lower prescription drug prices, and reduce delays in care for patients.  Thank you to the Arkansas General Assembly and Governor Sanders for taking a bold and courageous stand against conflicts of interest by PBM middlemen to improve the health and wellbeing of Arkansans,” said John Vinson, Pharmacist and CEO of Arkansas Pharmacists Association.
 
“On behalf of the 19,000 independent pharmacies across the United States, I would like to thank the Arkansas General Assembly and Governor Sarah Huckabee Sanders for protecting pharmacy access for patients and blazing a trail for the rest of the country to follow,” said B. Douglas Hoey, Pharmacist and CEO of National Community Pharmacists Association.
 
“As a cancer-focused organization, our goal is to uncomplicate care for patients—and that’s exactly what this bill aims to do. It bolsters coordination of care and improves access which ultimately leads to better outcomes,” said Adam Head, President and CO of CARTI.
 
“Thank you to Representative Moore, Senator Hammer, the Arkansas legislature, and Governor Sanders for taking this nation leading step to prevent PBMs from self-directed steering in Arkansas and protecting patient choice and local access to care. I have seen the need for this firsthand while serving patients with mental health disorders in central Arkansas and surrounding rural areas. By signing HB1150 into law, barriers to treatment for mental health will be removed leading to lower healthcare costs but more importantly a better quality of life for patients and families that suffer from mental health disorders. Thank you, Governor Sanders, for your courageous leadership and for putting Arkansas first,” said Brittany Sanders, Pharmacist and Owner at The Pharmacy at Wellington.
  
“As a proud Arkansas pharmacy owner, I want to thank Governor Sanders for signing HB1150 and our legislature for passing this critical piece of legislation. HB1150 puts patients first ending the monopolistic grip that pharmacy benefit managers (PBMs) have held over competitor pharmacies and the patients we serve. This is more than just a win for local businesses—it’s a victory for access, choice, and fairness in healthcare. I especially hope the federal government is watching. Veterans and active-duty service members, like my brother, Capt. Bryan David Torres, USMC, deserve the freedom to choose the care that’s best for their health, not be forced into limited networks including Tricare that serve PBM profits over people,” said Blake Torres, PharmD, Pharmacist and Owner at West Side Pharmacy.
 
“Once again Arkansas legislators get it right with HB1150!  Hats off to our state government and to Governor Sarah Sanders for protecting Arkansans’ rights to local pharmacy services. As a pharmacy owner and healthcare provider in rural southeast Arkansas I face many challenges. One huge challenge is patient access to local pharmacy services. HB1150 is a very big step in the right direction. Large amounts of out of state dollars are dumped into our state for advertising that has grossly misrepresented what this piece of legislation is all about. The bottom line is better patient care from the pharmacies that are local, convenient and genuinely dedicated to serving the local community. That’s what it’s all about,” said Lynn Wilson, Pharmacist and Owner at Rison Pharmacy.
  
‘HB1150 will allow Genuine Care Pharmacy the ability to continue our relationships with our current patients and allow us to reestablish relationships that have been put on hold because of anticompetitive PBM practices. HB1150 will enhance our ability to care for the community we support and love. Thank you to Governor Sanders,” said Clint Recktenwald, Pharmacist and Owner at Genuine Care Pharmacy.
 
“Thank you to Governor Sanders as HB1150 will ensure that our cancer patients are finally able to get their medication locally and when they leave our clinics instead of being forced to use an out of state mail order pharmacy that sometimes fails to deliver the medication, sometimes delivers the wrong dose, and frequently makes it significantly more difficult for a cancer patient to get appropriate, local, and timely access to their complex regimen. As an additional benefit, besides our patients, we expect our employer pharmacy spending to decrease,” said Jeff Hunnicutt, CEO of Highlands Oncology Group.
 
“It is extremely frustrating to have cancer treatment medication the patients need on your shelves in the pharmacy and be prohibited from dispensing it to a local mother, father, or caregiver that others in the community rely on every day. HB1150 will enable patients to access care, quickly, without any additional expenses to the employer or the patient and get Arkansans back to their families quicker!  Thank you to Governor Sanders for signing this historic policy for Arkansas,” said Sandy Kinsey, Pharmacist and Chief Pharmacy and Procurement Officer at Highlands Oncology Group. 
 
“As a rural, independent pharmacy, we lose access to patients who are forced by massive PBMs to their own PBM affiliated mail-order and specialty pharmacies, reimburse themselves at inflated rates, and underpay local pharmacies for dispensing the same medications. Patients are increasingly being forced to use PBM-owned mail-order pharmacies for expensive specialty drugs, stripping them of choice and disrupting continuity of care. HB1150 brings much-needed transparency, prevents PBMs from acting as both payer and provider, and restores fair competition—ensuring patients have the freedom to choose where they get their medications at lower costs and better service, including from trusted local pharmacies like ours in Gravette. Thank you Governor Sanders for your leadership,” said Lindsey Watford, Pharmacist and Owner at Teasley Drug.
 
“For too long, our patients have been forced into monopolistic PBM practices that inflate drug prices, steer patients, and slash reimbursements behind closed doors at local pharmacies while prices are much too high in PBM owned mail order pharmacies.  HB1150 changes that conflict of interest and requires big insurance to choose to be a PBM or be a pharmacy, but not both.  This law is more than a win for our pharmacy — it’s a win for rural patients, local jobs, and healthcare access in communities across the state.  We’re grateful to the Arkansas legislators, advocates, and patients who helped push this across the finish line — and especially to Governor Sanders for signing it into law,” said Kass Lomax, Pharmacist and Owner at Southern Pharmacy.
 
“For patients in Pine Bluff, HB1150 being signed into law secures the future of access to care in two very different yet vital ways. It ensures that locally owned, independent pharmacies will be able to remain operational in this underserved community where nearly a third of all stores are projected to close due to the unfair and unlawful practices of certain PBMs regarding declining financial reimbursements. It prevents Pine Bluff from becoming the next ‘pharmacy desert’ which would create a significant barrier to the community’s ability to obtain medications and clinical services directly resulting in continued healthcare disparities. HB1150 will not only prevent reduced access to care but will conversely increase access for many patients being forced to use mail orders when a PBM-owned pharmacy such as CVS mandates these terms through a major employer in the area but has no physical store within a drivable distance. In a state like Arkansas built on the backbone of thriving rural communities, areas like Pine Bluff have both everything to gain if HB1150 officially becomes law and everything to lose if it does not! I greatly admire Governor Sanders for her bold leadership on signing this legislation,” said Caroline Myers Kitchens, Pharmacist at Chapel Pharmacy. 
 
“Clarendon, Arkansas is in the heart of the Delta. It is here where life can be accurately described as a place where everyone knows your name.  It is also a place where there is a high concentration of patients with critical needs that depend on their local independent pharmacy. Access to pharmacy services is not just a convenience, it is a lifeline. Patients from the Delta present amongst the greatest needs, they rely on consistent pharmacy services to manage chronic conditions, obtain essential medications, get trusted advice, and receive vital consultations. However, those relying on these services are being compromised by PBMs, as they create barriers that interrupt the care that independent pharmacies can provide. These barriers compromise the health and well-being of the most vulnerable Arkansans. Good and consistent service is more than just dispensing medications, it is about personalized care, expert advice, and building relationships. When local pharmacy access thrives, our individual communities thrive! Thank you to the Arkansas Lawmakers and Governor Sanders for working diligently to help our communities across the state thrive,” said Marco Middleton, Pharmacist and Owner.
 
“For the last 20 years I’ve been a pharmacist in small south Arkansas towns, first Monticello and then Fordyce. It’s been an honor to play a small part in improving patient health. Unfortunately, due in great part to PBMs, my job has become much harder.  Large monopolistic PBMs force employees in our area to use PBM owned mail order pharmacies for maintenance medications. Not only do I lose out on helping these customers understand how to safely take their medications, but the PBMs also pay themselves greater rates than they offer small businesses like mine. Who helps the patient when their mail order prescriptions are late? I do. Who comes in after hours and on weekends to fill medications for them and their loved ones? I do. Who talks to them about their health concerns at church, at the baseball game, at the grocery store or answers a question for them on Facebook or by personal cell phone? I do and I’m paid mere cents above cost or even below cost. If PBMs are allowed to continue to control and manipulate healthcare like they’ve been doing for years, businesses like mine will continue to go out of business and no one will be there to fill our shoes.  Will the customer service agent in India answer the elderly patient in a way they can comprehend and understand? No. Will they check on them when they see they are in the hospital? No. Will they talk to their family and let them know they are available for emergencies at any hour? No. HB1150 ends the conflicts of interest from PBMs that raise prices and take away access for every person living in our part of Arkansas. Thank you to Governor Sanders for your incredible support,” said Daniel Bryant, Pharmacist at Watson Pharmacy. 
 
“Thank you to Governor Sanders for signing HB1150 into law. I am a pharmacist and owner of Smackover Family Pharmacy in Smackover, Arkansas. Smackover is a rural town located between Camden and El Dorado in southern Arkansas, with a population of about 1,500 people. I was born and raised in Smackover. I am a proud alumnus of Smackover High School, and now my son is a 4th generation who will one day call himself the same. The friends, teachers, coaches, doctors, local oil field workers, senators, lawyers and various others make up the people I looked up to, grew up alongside, or just knew from a simple “hello” at one of our two gas stations in town. We are a rural, small town, with good value kind of people, and I take pride in taking care of every person who comes into my pharmacy every single day. You are taking a very important step, in affording every one of my friends and neighbors the opportunity to continue using the one and only pharmacy in their community. It will help preserve their right to go to the pharmacy of their choosing and not be dictated to go 10 to 15 miles to the next closest big box store. Even worse, not be forced to use a PBM owned mail order pharmacy that magically can afford to lose $50 on a prescription, when in actuality they aren’t losing at all, instead they are paying themselves more than small local independents like me are being reimbursed by the very same PBM. Thank you for finally bringing to light how PBMs have monopolistically taken over our prescription healthcare system at the cost of all Arkansans. Thank you for passing and signing legislation that will for once put patients’ healthcare and fair business practices above PBM’s self-fulfilling tactics and goals. Thank you for giving Arkansans a win after being forced to lose for far too long,” said Austin Lambert, Pharmacist and Owner of Smackover Family Pharmacy.