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PBM trade group warns Arkansas-style law is enjoined and could isolate Tennessee if adopted
Summary
The Pharmaceutical Care Management Association told the Insurance Committee that Arkansas Act 624 — which would have restricted PBM-related pharmacy ownership — is currently enjoined and could create TRICARE and Commerce Clause issues if enforced; PCMA presented member data projecting pharmacy closures, job losses and higher costs if similar legislation passed in Tennessee.
Michael Power, representing the Pharmaceutical Care Management Association, briefed the committee on PBM-related legislation and its aftermath in Arkansas, telling members that Arkansas Act 624 was passed and signed into law but is not currently being enforced after a federal judge issued an injunction citing potential impacts on TRICARE beneficiaries and constitutional concerns.
"As it sits today, Arkansas Act 624 is not being enforced for 2 primary reasons," Power said, citing the federal judge's injunction and pending appellate proceedings. Power warned Tennessee could be "somewhat on an island" if it adopted similar restrictions and presented PCMA member data estimating clinical and economic impacts, including claims that roughly 168 pharmacy closures could occur and about 8,000 PBM-related jobs could be affected if the law were enforced as written.
Power also cited modeling that tied access loss to medication adherence and an increase in hospitalizations; he referenced a 2024 JAMA paper used to estimate clinical outcomes and urged the committee to consider those downstream impacts and pending federal litigation.
