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HB 1150 is just the latest signal that the traditional PBM model is outdated.
Arkansas House Bill 1150, signed into law on April 16, 2025, prohibits pharmacy benefits managers (PBMs) from owning or operating pharmacies within the state. Though opposed by traditional PBMs, the law addresses potential conflicts of interest and anti-competitive practices in the pharmaceutical industry.
The enactment of HB 1150 has amplified national conversations about the role of traditional PBMs in the pharmaceutical supply chain. Last month, thirty-nine attorneys general urged Congress to pass legislation similar to Arkansas' law. Luckily, neutral, transparent PBMs like Rightway were designed to comply with these proposed changes.
When PBMs own their own pharmacies, they are incentivized to steer members towards those owned pharmacies or services, even if it’s not the most cost-effective or convenient option. By controlling where prescriptions are filled and which drugs are covered, PBMs can drive utilization toward high-rebate drugs.
Additionally, vertically integrated PBMs limit member choice. Traditional PBMs create pharmacy networks that strongly favor the big pharmacies they own or are partnered with, meaning smaller, independent pharmacies are often excluded or blocked from joining those networks.
House Bill 1150 is part of a bigger national trend calling for more accountability from PBMs. Employers and lawmakers are pushing for greater transparency within a system that has often put profits ahead of members.
National expansion of laws like HB 1150 could raise the bar for PBM oversight. Benefits leaders working with traditional PBMs may either need to restructure their existing PBM agreements or reevaluate new and compliant PBM partners. This legislation will directly impact PBMs that owntheir own retail pharmacy chains.
As a client-aligned, fully neutral PBM, Rightway is well-positioned to already comply with these changes.
Rightway is not vertically integrated and does not own or control any pharmacies, which eliminates conflicts of interest and ensures members have freedom of choice when selecting a pharmacy. As a fully neutral PBM, Rightway always acts in the best interests of both our clients and our members.
Rightway allows any willing pharmacy to join its network under fair and consistent terms.
Rightway does not prioritize any one pharmacy over another and does not limit patient choice.
By removing alignment with specific pharmacies, Rightway is solely focused on delivering clinical integrity, competitive pricing, and transparency for clients and members.
With an aligned and transparent pricing model—with no hidden costs, spread pricing, or retained rebates—Rightway is designed to meet all obligations and mitigate your financial risk, too.