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Tennessee lawmakers approve ban on PBM ownership of pharmacies despite disputed fiscal impact
Summary
The legislature passed a bill preventing pharmacy benefit managers from owning pharmacies, aiming to boost independent pharmacies and shift rebates to patients. Sponsors said the measure lowers drug costs; opponents raised state cost estimates of tens of millions a year that fiscal review did not corroborate.
State lawmakers on the Williamson County Policy Talks forum described a newly passed law that bars pharmacy benefit managers (PBMs) from owning retail pharmacies, a change supporters say will improve reimbursements for independent pharmacies and reduce drug costs.
Senator Joey Hensley, who described the measure as a response to ‘‘vertical integration’’ in the pharmacy industry, said the law prohibits entities from both operating a PBM and owning a pharmacy in Tennessee. Hensley said PBMs negotiate rebates from manufacturers, determine preferred-drug lists and control reimbursement rates; the bill aims to ensure rebates benefit pharmacies and patients rather than being…
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