TBA Law Blog


Posted by: Julia Wilburn on May 26, 2026

Gov. Bill Lee recently signed the FAIR Rx Act, which prevents pharmacy benefit managers (PBM) from holding pharmacy licenses in Tennessee and requires those companies to divest pharmacy ownership by July 1, 2028. The Tennessee Journal reports that CVS Health, which operates 134 retail pharmacy stores and 25 MinuteClinic locations in Tennessee, almost immediately filed a federal lawsuit in an attempt to block the law. According to NewsChannel 5, CVS said the legislation would lead to pharmacy closures, job losses and reduced healthcare access across the state. Supporters of the legislation, including the Tennessee Pharmacists Association, argue the bill is necessary to stop conflicts of interest in the prescription drug industry and protect independent pharmacies from unfair reimbursement practices.