Bill > SB2040

This bill, known as the "Freedom, Access, and Integrity in Registered Pharmacy (FAIR Rx) Act," aims to prevent pharmacy benefits managers (PBMs), which are companies that manage prescription drug benefits on behalf of health insurers, from owning or controlling pharmacies. Starting January 1, 2027, PBMs will be prohibited from having any ownership or beneficial interest in, or exercising control over, a pharmacy license or a pharmacy itself, regardless of the percentage of ownership. This control is broadly defined to include influence over professional judgment, dispensing decisions, and patient steering. The bill also establishes a process for limited-use pharmacy licenses for rare drugs, which cannot be transferred to PBMs, and requires pharmacies to disclose ownership and control information to the board of pharmacy annually, with failure to comply leading to license denial or revocation. The board of pharmacy will also notify potentially non-compliant pharmacies and provide a timeline for divestiture or sale to unaffiliated entities, with specific provisions for handling appeals and enforcement, including civil penalties and injunctive relief.

Budget and Finance, Health and Social Services

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB2040&ga=114