Tennessee lawmakers advance pharmacy bill as CVS threatens lawsuit [USA TODAY]
CVS Health Corporation (CVS)
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Source: USA TODAY
Senators passed the bill, and a final House vote is set. Nashville Tennessean CVS Health is threatening to sue the state of Tennessee after Tennessee senators gave bipartisan approval to a measure to require pharmacy benefits managers to divest from pharmacies they manage. Pharmacy benefit managers, or PBMs, are third parties that manage prescription drug benefits. Audits have found PBMs including CVS Health have unfairly favored affiliated pharmacies and shortchanged independent pharmacies not associated with the CVS brand. The FAIR Rx Act , Senate Bill 2040, would bar PBMs from managing pharmacies they own. Hospital and employer-owned pharmacies are excluded from the bill. “The PBMs have been caught red-handed,” said Senate sponsor Bobby Harshbarger, R-Kingsport, pointing to a 2024 audit that found Caremark reimbursed CVS-affiliated pharmacies at a higher rate than independent pharmacies. Harshbarger also referenced a federal report that found Caremark overcharged a fede
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