Tennessee Governor Bill Lee signed the legislation into law last week. The measure is aimed at restricting companies from simultaneously owning pharmacy benefit managers, insurance companies, and retail pharmacies within the same corporate structure. Supporters of the law say it is designed to increase fairness and transparency in prescription drug pricing while helping independent pharmacies compete with large corporations.
CVS Health argues the law unfairly targets its business model and says complying with the legislation could force the company to close pharmacies across Tennessee by 2028. In its lawsuit, CVS claims the law is unconstitutional and warns it could reduce access to medications and healthcare services for Tennessee patients.
The issue has generated strong reactions statewide. Supporters of the Fair Rx Act argue pharmacy benefit managers — often referred to as PBMs — have too much influence over prescription pricing and reimbursement practices. Critics of PBMs have accused large corporations of creating conflicts of interest that can disadvantage smaller independent pharmacies.
Locally, any long-term closure or restructuring of CVS stores could have a noticeable impact for residents who rely on the company’s pharmacies for prescriptions, over-the-counter medications, and walk-in healthcare services. Marion County residents frequently use the CVS locations in Jasper along Main Street as well as the Monteagle store, particularly for convenient prescription pickup and insurance-covered medications.
For rural communities, pharmacy access can be especially important for senior citizens, patients managing chronic illnesses, and families needing quick access to medications without traveling long distances.
At this point, no closures have been announced in Marion County or elsewhere in Tennessee. The law is scheduled to take effect in 2028 while the lawsuit moves through federal court and CVS recently backed away from earlier warnings that all of its Tennessee stores could close if the measure became law.
Now, the company says stores will remain open while the lawsuit moves through court. Some legal experts say the lawsuit could delay any store closures for years, preventing the new law from being enforced until a settlement is reached.