CVS Health Dispels Arkansas Store Closure Rumors with New Announcement

CVS Health confirms all Arkansas pharmacies remain open despite a new state law that threatens their future operation by preventing pharmacy benefit managers from owning retail locations.

Key Points

CVS plans to close 271 retail stores in 2025 as part of a broader restructuring plan, following approximately 900 closures between 2022-2024.
A new Arkansas law (Act 624) signed by Governor Sarah Huckabee Sanders prevents Pharmacy Benefit Managers from owning pharmacies, directly impacting CVS’s 23 locations in the state.
CVS argues the law will reduce healthcare access and increase prescription costs, while supporters claim it promotes fair competition and removes conflicts of interest.
Despite nationwide closures and the new Arkansas legislation, CVS confirms all its Arkansas locations currently remain operational.

Arkansas CVS Stores Face Uncertain Future

CVS Health has confirmed that all 23 of its Arkansas pharmacy locations remain open despite rumors of imminent closures. The pharmacy giant faces a challenging regulatory environment in the state after Governor Sarah Huckabee Sanders signed Act 624, which prevents Pharmacy Benefit Managers (PBMs) from owning and operating pharmacies. This legislation directly impacts CVS Health, which owns both retail pharmacies and Caremark, one of the nation’s largest PBMs that controls approximately one-third of the market share.

“Store closure decisions are based on several factors, including population shifts, consumer buying patterns, store and pharmacy density, pharmacy care access, and community health needs. We’re focused on ensuring we have the right kinds of stores and the right number of stores in the right locations. We’re closing locations strategically to better meet consumers’ health, wellness and pharmacy care needs – as announced more than three years ago – not in reaction to industry pressures.” – A spokesperson for CVS

Nationwide Closure Strategy Continues

The uncertainty in Arkansas comes as CVS implements a broader strategy to close 271 retail stores in 2025 as part of what the company calls an “enterprise-wide restructuring plan intended to streamline and simplify the organization.” This follows approximately 900 closures between 2022 and 2024. Despite these reductions, CVS maintains that even after planned closures, 85% of Americans will still live within 10 miles of a CVS Pharmacy, and the company plans to open 30 new pharmacy locations in 2025.

Arkansas Law Creates Unique Challenge

The Arkansas situation differs from other states because of the new legislation specifically targeting PBM-owned pharmacies. Governor Sanders and supporters of the law argue it’s necessary to protect independent pharmacies and prevent patient abuse by PBMs, which have been criticized for their lack of transparency in drug pricing negotiations. The Arkansas Pharmacists Association backs Act 624, claiming it will promote fair competition in the state’s pharmacy marketplace and remove inherent conflicts of interest.

CVS contends that the new law will have the opposite effect, potentially increasing prescription drug costs and reducing healthcare access for Arkansas residents by 2026. The company serves more than 340,000 pharmacy patients in Arkansas, with several 24-hour locations providing round-the-clock medication access. While CVS is reviewing its options, the company has not yet announced definitive plans for addressing the regulatory challenge posed by Act 624.

The PBM Controversy

The core issue at stake is the role of PBMs in the healthcare system. These middlemen negotiate drug prices between pharmaceutical companies, insurers, and pharmacies, but have faced growing criticism for their opacity and potential conflicts of interest when they also own retail pharmacies. The three largest PBMs – CVS Health’s Caremark, Cigna’s Express Scripts, and UnitedHealth’s Optum Rx – control approximately 80% of the market, giving them significant influence over prescription drug access and pricing.

Governor Sanders has positioned herself as a champion against corporate overreach, defending Act 624 as a measure to hold large corporations accountable and ensure fair practices. Meanwhile, CVS warns that disrupting the current system could have unintended consequences for patients who depend on their services. For now, Arkansas residents can still fill their prescriptions at CVS locations, but the long-term fate of these pharmacies remains unclear as the company navigates this challenging regulatory environment.