TBA Law Blog


Posted by: Julia Wilburn on Mar 26, 2026

The Tennessee Senate Finance Ways and Means Committee passed the FAIR Rx Act (SB2040/HB1959) with bipartisan support on March 24. The bill would bar pharmacy benefit managers (PBMs) from owning the pharmacies they manage, targeting vertically integrated companies like CVS, which has threatened to close all 134 stores in the state if the bill becomes law. Relatedly, the Tennessee Journal reports that Attorney General (AG) Jonathan Skrmetti is threatening to sue CVS for using customers' pharmacy data to run a political text campaign against the bill. Cost estimates are disputed, with state officials suggesting the bill could cost taxpayers up to $53 million annually, though legislative analysts argue pharmacies could restructure rather than close. The controversy is fueled by audits showing CVS's PBM arm, Caremark, routinely underpaid independent pharmacies and overcharged a federal employee health benefits program by more than $615 million. The Tennessean has more on the developments.