TBA Law Blog


Posted by: Julia Wilburn on Feb 17, 2026

A new audit by the Tennessee Department of Commerce and Insurance found that Caremark, a pharmacy benefits manager (PBM) and subsidiary of national drug store operator CVS Health, committed multiple violations, including preferential reimbursement to its own pharmacies, spread pricing, improper dispensing-fee payments, and failures in required appeals procedures. The report echoes concerns raised by the Tennessee Pharmacists Association in a statement saying the findings highlight discriminatory actions that hurt independent pharmacies. CVS told the Nashville Post that the company is working with regulators while opposing the newly proposed FAIR Rx Act (SB2040/HB1959), filed by Sen. Bobby Harshbarger, R-Kingsport, which seeks to eliminate PBM conflicts of interest. Bill supporters argue the audit proves the need for greater transparency, while PBM trade group Pharmaceutical Care Management Association disputes the findings.