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House limits PBM ownership of pharmacies in sweeping measure to protect independents
Summary
House Bill 11‑50 passed the Arkansas House 89‑4‑4; the measure prohibits pharmacy benefit managers from owning pharmacy licenses in the state, a move supporters say protects independent and rural pharmacies and critics say raises TRICARE and access concerns.
The Arkansas House on April 2025 approved House Bill 11‑50, legislation that prohibits pharmacy benefit managers (PBMs) from holding a pharmacy license in Arkansas. Representative Moore sponsored the bill, saying it prevents PBMs from acting as both price‑setting middlemen and retail competitors. The measure passed by recorded ballot, 89 yeas, 4 nays and 4 present.
Supporters said vertical integration by PBMs and affiliated retail chains has undermined independent pharmacies. Representative Moore cited data presented in committee showing large differences in reimbursement rates between independent pharmacies and PBM‑owned outlets. “They reimburse their affiliated pharmacies at a higher rate than unaffiliated pharmacies on nearly every specialty and generic drug examined,” Moore said, reciting Federal Trade Commission findings and committee testimony.
Opponents raised concerns about continuity of care and federal contractors. Representative Perry described the potential impact on TRICARE beneficiaries and military retirees who currently receive benefits through PBM arrangements and warned of short‑term disruption pending new contracts. Other representatives sought assurances that access points for patients, including mail‑order and specialty drugs, would remain available.
Supporters replied that large retailers and other pharmacies — Walgreens, Kroger and hospital systems — can continue to serve TRICARE members via contracts and that state action is necessary to restore competition and prevent predatory pricing tactics that threaten independent pharmacies. Representative Wooten and other backers said many independent pharmacists had told them they faced closure because of PBM practices.
The House clerk called the recorded ballot: 89 yeas, 4 nays, 4 present. The bill now goes to the Senate.
Why it matters: Backers say the bill defends rural and independent pharmacies from market practices that favor PBM‑affiliated pharmacies; opponents say the transition could disrupt beneficiaries who rely on PBM networks. Supporters stress this is a pro‑competition, consumer‑choice measure.
Formal action: Passage of House Bill 11‑50 — recorded vote 89‑4‑4.
