TBA Law Blog


Posted by: Azya Thornton on Apr 29, 2026

CVS Health is threatening to sue Tennessee after both the House and Senate gave bipartisan approval to a bill requiring pharmacy benefit managers to divest from pharmacies they manage, the Tennessean reports. Pharmacy benefit managers (PBMs) are third parties that manage prescription drug benefits. Audits have found PBMs, including CVS Health, have unfairly favored affiliated pharmacies and shortchanged independent pharmacies. The FAIR Rx Act (SB2040/HB1959) would bar PBMs from managing pharmacies they own. Hospital- and employer-owned pharmacies are excluded from the bill. CVS, which owns PBM Caremark as well as retail pharmacies and insurer Aetna, said it may sue if the bill becomes law, and warned it could close its 137 Tennessee locations, eliminate jobs and reduce access to care. The bill now awaits the governor's consideration.