JARRETT GOODMAN
Staff Writer
A new legislative bill that aims to prohibit major pharmaceutical companies from owning a pharmacy and regulating PBMs (Pharmacy Benefit Managers) has recently advanced into the Tennessee General Assembly.
The bill, sponsored by State House Rep. Rick Scarbrough, aims to prohibit major companies such as CVS and Walgreens from owning statewide pharmacies and gaining oversight over health PBMs and insurers. This move aims to allow financial separation and control over medication prices determined by major pharmaceutical companies, preventing potential conflicts of interests within the medical market.
The bill has already passed in a 7-2 vote within Tennessee’s House Insurance Subcommittee. The bill now resides in the hands of the main House Insurance Committee for further consideration. If approved, the bill would cause a major shift towards many pharmacies within the state’s market and how various prescription medications are provided to Tennesseans. However, the bill would not go into effect until 2028.
Published under a fiscal memorandum regarding State Bill 2040, rural communities would be most affected by the bill if passed, as smaller communities provide fewer resources for prescription sale and distribution. CVS corporate publicly stated opposition towards the proposed bill, citing the bill would negatively affect pharmacy care across the entire state, especially to Tennesseans who have long depended on major pharmacies for their medical needs.
“It endangers Tennesseans by eliminating access to 134 vital community pharmacies and the essential health and wellness products they provide,” the company stated. “People with chronic, complex conditions will have fewer home delivery options and less access to high-touch, expert specialty pharmacies.”
In addition to leading to a major closure of all 134 CVS locations in the state, CVS’ MinuteClinic locations would also close, further adding to rising concerns and tensions towards the bill. The company issued an ad urging all Tennesseans to convince legislators to oppose the bill, as tensions between the state and one of the nation’s largest pharmaceutical companies escalate.