CHATTANOOGA, Tenn. — A major pharmacy chain says that if a Tennessee House Bill passes, it may have to close all of its stores in the state.
The bill would ban pharmacy benefit managers (PBM) from owning or operating pharmacies in Tennessee, significantly changing how prescription drugs are managed.
A PBM is a third-party that acts as a “middle-man” for prescription drugs.
They were created in the 1960’s to help insurance companies control drug spending.
However, mergers in recent years have raised concerns from some law makers about price hikes.
Lawmakers who support the bill argue it protects consumers and independent pharmacies.
“It requires a fair and transparent pharmacy system, and conflicts of interest can arise when pharmacy managers, covered entities and pharmacies are under common ownership,” said Senator Rusty Crowe Harshbarger during a legislative hearing.
CVS patients received a text this week letting them know that if Tennessee House Bill 1959 were to pass, their pharmacies would close statewide.
But does this bill really require CVS’s 134 locations in Tennessee to close?
Kyle Smith, Pharmacy Manager at CVS in St. Elmo says…
“If our store were to shut down, it would be pretty tough for the community just to access, you know, their health care.”
Smith says if they were to close, it would negatively impact his patients.
But CVS claims that the wording of this bill would leave them without any choice.
They have signs in their stores and commercials hoping patients will contact their representatives to ‘save their stores.’
But Senator Harshberger says that this bill does not close pharmacies, it just forces PBMs and pharmacies to not be owned by the same company, which is the model that CVS uses.
“I think it creates confusion, because that’s not what this bill says at all,” Jacob Standefer says.
Independent pharmacists like Jacob Standefer say that this bill would benefit patients in the long run.
“I could see this saving patients money. It’s going to open up their access to care. They’re not going to be forced to that specialty pharmacy, and that’s the only one they can get their medicine from. They’ll be able to choose where they want to go,” Standefer says.
The bill passed the Tennessee House Insurance Committee Tuesday, making it one step closer to be signed into law.
If it were to pass, the bill would take effect January 1st 2027.