The Tennessee State House would prohibit pharmacy benefit managers from also operating pharmacies in the state — a structure that CVS Health currently uses across its business.

CVS Health has said, through televised commercials, passage of the Fair Rx Act would force the company to close more than 130 stores in Tennessee.

The legislation was put forward by Rep. Rick Scarbrough (R-Oak Ridge) in the House and Sen. Bobby Harshbarger (R-Kingsport) in the Senate. It would make it illegal for pharmacy benefit managers to also operate pharmacies in Tennessee.

CVS Health owns pharmacies, operates as a pharmacy benefit manager and owns Aetna Insurance — a structure that allows the company to determine drug costs across its affiliated businesses.

A state audit found CVS reimbursed affiliated pharmacies more than non-affiliated pharmacies. The company’s annual revenue totals in the hundreds of billions of dollars.

CVS sent text messages to customers across Tennessee asking them to contact their legislators and vote no on the bill. CVS argues the passage of the bill and subsequent closure of their stores would hinder access to medication for Tennesseans across the state.

 


 

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