Tennessee Legislature Passes Bill to Limit PBM-Owned Pharmacies, Heads to Governor

TL;DR: Tennessee lawmakers sent a bill to Governor Bill Lee that would curb pharmacy benefit manager‑owned pharmacies. CVS says the measure could close 25 MinuteClinic sites and cut more than 2,000 jobs in the state.

The bill targets pharmacies that are owned or controlled by pharmacy benefit managers (PBMs), companies that negotiate drug prices and manage formularies for insurers. Supporters argue the restriction will increase competition and lower costs for consumers.

The Tennessee House passed the legislation on Tuesday, and the Senate approved the same measure on Monday. CVS Health warned that enacting the law would force the closure of 25 MinuteClinic locations across Tennessee and eliminate more than 2,000 jobs, citing potential losses of acute and primary‑care access.

Existing research on PBM‑owned pharmacies consists mainly of observational cohort studies; for example, a 2022 cohort of 1.2 million Medicare beneficiaries found higher average prescription prices at PBM‑affiliated outlets, but the design cannot prove causation. Experts note that any price effects may be confounded by regional market factors.

Practical takeaways for readers: if the bill becomes law, patients in Tennessee may see fewer walk‑in clinic options and could experience shifts in where they fill prescriptions; monitoring drug prices and clinic availability will be important.

What to watch next: Governor Lee’s decision to sign or veto the bill, and any subsequent legal challenges that CVS has indicated it may pursue in federal court.