"Last year, Arkansas became the first state to sign a law that would have prevented PBMs from owning and operating pharmacies in the state. However, CVS Caremark, Express Scripts and lobbying group Pharmaceutical Care Management Association quickly challenged the law, leading to a judge blocking it from being enacted."
"Tennessee lawmakers passed the FAIR Rx Act last week, which also prohibits a PBM from owning a pharmacy. It passed in the Senate with a 24-9 vote and in the House with an 86-7 vote."
"CVS Health has already said that it's prepared to challenge the constitutionality of this potential law like it did in Arkansas. And one legal expert believes it could be difficult for the state to defend the bill."
"Tennessee's bill also has a two-year implementation lag, compared with the Arkansas law. If the Tennessee Governor signs it into law, it may face similar legal challenges."
Pharmacy benefit manager reform is gaining traction at the state level, with Tennessee passing the FAIR Rx Act to prohibit PBMs from owning pharmacies. This follows Arkansas's attempt, which was blocked by a judge citing the Commerce Clause. Tennessee's bill awaits Governor Bill Lee's decision and faces potential legal challenges from CVS Health. Legal experts suggest defending the bill may be difficult due to its similarities with the Arkansas law, which conflicted with federal programs. The Tennessee bill includes a two-year implementation delay.
Read at MedCity News
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