US EditionTennessee lawmakers approve bill targeting pharmacy benefit managers
The measure would bar companies from owning pharmacies and controlling both a pharmacy benefit manager and an insurer, with $10,000 daily penalties for violations.
- On Tuesday, the Tennessee House passed the Fair Rx Act, sending legislation to Governor Bill Lee for his signature after the Senate approved it on Monday.
- Senate Bill 2040 prohibits companies from owning a pharmacy while also owning a pharmacy benefit manager and health insurer with ownership exceeding 5%. Supporters say it promotes transparency and protects system integrity.
- CVS Health warned the legislation could force closure of 25 MinuteClinic locations and more than 100 stores, resulting in loss of more than 2,000 jobs. The company threatened federal court challenge.
- If signed, the law takes effect July 1, 2028, with civil penalties up to $10,000 per violation, per day. Existing pharmacies may operate through December 31, 2028, if pursuing an unaffiliated sale.
- Tennessee Attorney General Jonathan Skrmetti warned CVS Health over "political advocacy messages" sent to customers through pharmacy texts. Federal lawmakers, including Arkansas Democrat Josh Hawley, introduced similar bipartisan legislation in the U.S. Senate.
14 Articles
14 Articles
Pharmacy company crackdown coming to Tennessee; CVS pledges to sue
The Tennessee House and Senate have passed the so-called Fair RX Act after a multi-million dollar opposition campaign from pharmacy giant CVS. The fight isn’t over. The company has said that if Gov. Bill Lee signs the bill, it will file a federal lawsuit. “This misguided policy will lead to serious consequences for the state, including the closure of 25 MinuteClinic locations, where Tennesseans get acute and primary care, and the loss of more th…
Tennessee Pharmacy Benefit Manager Approved By Legislature. CVS Plans To Sue.
Image Credit: ajay_suresh / CC ***Note from The Tennessee Conservative – this article posted here for informational purposes only.*** By Adam Friedman [Tennessee Lookout -CC BY-NC-ND 4.0] – Tennessee lawmakers overwhelmingly passed legislation banning a pharmacy from owning a pharmacy benefit manager, PBM, effectively targeting one of the largest healthcare conglomerates in the country. CVS Health is the only company in Tennessee that owns a ph…
Tennessee passes bill targeting pharmacy benefit managers. CVS plans to sue.
The Tennessee legislature passed a bill that effectively targets pharmacy giant CVS, which is threatening to sue the state. (Photo: Getty Images)Tennessee lawmakers overwhelmingly passed legislation banning a pharmacy from owning a pharmacy benefit manager, PBM, effectively targeting one of the largest healthcare conglomerates in the country. CVS Health is the only company in Tennessee that owns a pharmacy and PBM, which is a middleman used by …
Prescription Drug Bill Advances Statewide
CHATTANOOGA, Tenn. (WDEF) – Tennessee lawmakers have passed the “Fair Rx Act,” legislation that would restrict certain types of ownership within the prescription drug industry in the state. The bill would prohibit a company from owning a pharmacy while also owning a pharmacy benefit manager and a health insurer if ownership exceeds five percent. Pharmacy benefit managers, or PBMs, serve as intermediaries between insurance companies and pharmacie…
TN lawmakers pass 'Fair Rx' Act, could result in numerous CVS pharmacy closures
The FAIR Rx Act targets pharmacy benefit managers’ influence by prohibiting their ownership or control of pharmacies in Tennessee, with the bill passing the House 86-7 and the Senate 24-9, now pending the governor’s signature for implementation in 2027.
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