Tennessee lawmakers have approved legislation targeting pharmacy benefit managers, prompting warnings from CVS Health about potential pharmacy closures and reduced patient access, according to an April 21 report from ABC affiliate WKRN.
The bill, which passed the House and Senate, would prohibit a company from owning a pharmacy while also operating a PBM or health insurer in the state. It now heads to Gov. Bill Lee for consideration.
CVS said in a statement shared with WKRN the measure could lead to the closure of more than 130 pharmacies and added it may challenge the law in federal court. The company also said the policy “will not lower drug costs” and could reduce access to care.
Proponents of the legislation said it is intended to support independent pharmacies and address concerns about PBM practices. A 2024 audit from the Tennessee Department of Commerce and Insurance found CVS Caremark used spread pricing, charging some plans more for medications than pharmacies were reimbursed.
CVS’ statement also said the legislation could result in the closure of 25 MinuteClinic locations and the loss of more than 2,000 jobs.
Mr. Lee has not indicated whether he will sign the bill.
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