Tennessee’s proposed PBM reform legislation is drawing national attention as states continue to challenge vertical integration within the pharmacy benefit manager (PBM) industry. The bill, which would restrict PBMs from owning pharmacies, follows similar efforts in Arkansas and comes amid growing concerns over pharmacy closures, reimbursement disparities, and patient access to care.
Supporters of the legislation argue that vertically integrated PBMs have contributed to the decline of independent pharmacies and reduced competition, while PBMs and affiliated companies contend that the measure could disrupt patient care, eliminate jobs, and reduce access to specialized pharmacy services.
In an article by MedCity News, Eric Knowles discussed the legal uncertainty surrounding Tennessee’s proposed law and the likelihood of future litigation if the bill is enacted. Knowles noted that while the bill’s overwhelming bipartisan support may improve its chances politically, potential lawsuits from PBMs could influence the governor’s decision. He also explained that Tennessee could face significant legal hurdles under the Commerce Clause, similar to the preliminary injunction issued against Arkansas’ law, though Tennessee’s placement in a different federal appeals circuit could lead to a different judicial outcome.
Read the full article in MedCity News.
