In a move that could significantly impact healthcare access across Arkansas, CVS Health has confirmed it will deploy 23 pharmacy closures in the state following the passage of a controversial new law that bans pharmacy benefit managers (PBMs) from owning pharmacy locations.
The closures, expected to take effect on January 1, 2026, come after Governor Sarah Huckabee Sanders signed HB1150 into law on April 16, 2025. The legislation was designed to reduce prescription drug costs, but CVS warns the policy could do just the opposite.
“Unfortunately, HB1150 is a bad policy… it will take away access to pharmacy care in local communities, hike prescription drug spending, and cost hundreds of Arkansans their jobs,” CVS said in a strongly worded statement.
What HB1150 Actually Does
HB1150 prohibits pharmacies from being owned by PBMs, entities that serve as middlemen between drug manufacturers, insurers, and pharmacies. PBMs negotiate pricing, determine drug availability, and manage reimbursements. Critics argue they operate with too much influence and create conflicts of interest, especially when PBMs own retail pharmacies.
CVS Caremark, the PBM arm of CVS Health, currently owns all 23 impacted stores in Arkansas, making them directly noncompliant with the new law.
Supporters of HB1150, including the Arkansas Pharmacists Association (APA) and National Community Pharmacists Association (NCPA), celebrated the law as a needed check on corporate consolidation.
“HB1150 is a structural change that gets to the heart of the problem,” said NCPA VP Anne Cassity. “PBMs have been manipulating the system to the detriment of patients, taxpayers, and pharmacies.”
CVS Fires Back: “A Disaster for Local Healthcare”
CVS has made its stance clear: this law doesn’t solve drug pricing, it makes it worse.
The company’s official response warns that shutting these locations would:
- Eliminate more than 500 local healthcare jobs
- Create pharmacy deserts in rural areas
- Raise prescription costs by millions annually
- Cut off access for 10,000 high-need patients in Arkansas who rely on specialty pharmacy services
Some of the affected pharmacies are reportedly 24-hour locations or serve as the only option for miles, making the closures a logistical and medical crisis for certain communities.
CVS also criticized the economics behind the bill, pointing out that CVS Caremark actually reimburses independent pharmacies in Arkansas 61% more than its own CVS stores, raising questions about who really benefits from the legislation.
“A simple economic analysis could have avoided all this chaos,” CVS added.
Part of a Bigger Shakeup at CVS
This isn’t just an Arkansas story, it’s part of CVS Health’s broader national restructuring.
The company is already in the final phase of a three-year plan to shut down 900 stores nationwide, a move announced in 2021. So far, 851 locations have already closed. The strategy is to reshape CVS’s retail footprint to match changing consumer habits and make room for more health-focused “HealthHub” locations.
But the Arkansas situation is different. These closures aren’t about business realignment, they’re about being forced out by state law. That distinction makes this case politically and legally charged, with national implications.
One Million Patients to Lose Coverage Nationwide
In a separate but equally alarming development, CVS Health announced it will exit the Affordable Care Act (Obamacare) exchange program through its insurance subsidiary Aetna starting in 2026.
That decision will leave nearly 1 million patients in 17 states without coverage, forcing them to seek new insurance plans by fall 2025.
“We are best able to serve members through other health benefit solutions,” said CVS in a statement, pointing to plans that are more profitable or better aligned with the company’s portfolio.
While these patients represent only a fraction of CVS’s total 27.1 million medical memberships, consumer advocates fear the decision could shrink coverage options in rural and underserved markets.
CEO David Joyner on Prescription Prices
The company is also under pressure over drug pricing. CVS CEO David Joyner recently blasted pharmaceutical manufacturers for what he called “egregious price hikes”, pointing to a $21 million increase in costs the company faced.
Joyner vowed to cut prices for consumers where possible and criticized current industry practices that favor profit over access.
That said, opponents of CVS point out that PBM consolidation, like that seen in CVS Caremark, is part of the problem, and that the company can’t position itself as a victim while benefitting from vertical integration.
What Happens Next?
For Arkansas residents, the countdown has begun. If no amendments or exemptions are passed, 23 CVS stores will close on January 1, 2026, and those living in pharmacy deserts will feel the pain first.
CVS says it’s open to dialogue:
“CVS Health welcomes a good-faith discussion with policymakers in Arkansas and across the country on ways to make medicine more affordable and accessible.”
Whether that discussion happens, or whether it’s already too late, remains to be seen.
TL;DR
- 23 CVS locations in Arkansas to close due to new law banning PBM-owned pharmacies
- Over 500 employees and 10,000 patients impacted
- CVS blasts law as “bad policy” that could raise drug prices, not lower them
- CVS exiting Obamacare in 2026, cutting off 1 million patients from coverage
- Ongoing pharmacy consolidation and insurance shakeups raise new questions about healthcare access in America
