CVS to file lawsuit over ‘Fair Rx’ Act in Tennessee
CVS said the law would force 160 pharmacies to close and put thousands of workers at risk, according to its federal filing.
- On Friday, CVS Health sued Tennessee lawmakers hours after Governor Bill Lee signed a law banning pharmacy benefit managers from owning pharmacies, with a federal judge blocking the law from taking effect.
- Nearly a decade of efforts to curb pharmacy benefit managers culminated in legislation backed by Tennessee lawmakers with personal stakes in the pharmacy industry, including Senate sponsor Bobby Harshbarger, who owns a pharmacy.
- Pharmacists Association CEO Anthony Pudlo argued independent pharmacies lack negotiating power against dominant PBMs that audit and control compensation, while a state audit revealed PBMs reimbursed drugs at affiliated pharmacies up to 160 times higher than non-affiliated stores.
- CVS spokesperson Amy Thibault called the law unconstitutional, pledging to exhaust all options to serve 1.5 million Tennessee pharmacy patients, while Americans for Lower Drug Prices warned rural Tennesseans and chronically ill patients would suffer most.
- In 2025, Arkansas passed similar legislation; CVS won a preliminary injunction stopping that bill, then applied the same legal strategy in Tennessee, though Tennessee Fiscal Review Committee executive director Bojan Savic disputed the projected $24 million cost.
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The Center Square
Daily Post-AthenianBattle begins over Tennessee's pharmacy benefits manager law
(The Center Square) – CVS Health followed through quickly on its promise to sue Tennessee if Gov. Bill Lee signed a bill requiring the company to divest its pharmacy benefit
Tennessee Lookout
CVS sues Tennessee over pharmacy benefit manager monopoly law
The Tennessee legislature passed a bill that effectively targets pharmacy giant CVS, which is threatening to sue the state. (Photo: Getty Images)CVS Health sued Tennessee lawmakers on Friday hours after Gov. Bill Lee signed a law banning a pharmacy benefit manager from also owning a pharmacy. The suit is filed in U.S. District Court for the Middle District of Tennessee. Lee signed the bill about a month after the bill made its way through the st…
CVS to file lawsuit over ‘Fair Rx’ Act in Tennessee
CVS is set to sue Tennessee following the passage of the 'Fair Rx' Act, which it claims prioritizes local politics over patient care and could lead to the closure of over 100 stores by 2028. The law aims to curb corporate influence on insurance coverage.
CVS sues Tennessee over pharmacy benefit manager monopoly law - Stateline Publications
The Tennessee legislature passed a bill that effectively targets pharmacy giant CVS, which is threatening to sue the state. (Photo: Getty Images)CVS Health sued Tennessee lawmakers on Friday hours after Gov. Bill Lee signed a law banning a pharmacy benefit manager from also owning a pharmacy. The suit is filed in U.S. District Court for the Middle District of Tennessee. Lee signed the bill about a month after the bill made its way through the st…
CVS sues Tennessee over pharmacy benefit manager monopoly law - The Mexico Ledger
The Tennessee legislature passed a bill that effectively targets pharmacy giant CVS, which is threatening to sue the state. (Photo: Getty Images)CVS Health sued Tennessee lawmakers on Friday hours after Gov. Bill Lee signed a law banning a pharmacy benefit manager from also owning a pharmacy. The suit is filed in U.S. District Court for the Middle District of Tennessee. Lee signed the bill about a month after the bill made its way through the st…
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