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Committee debate highlights audits, FTC findings and enforcement gaps in PBM oversight

Insurance Committee of the Tennessee House of Representatives · March 10, 2026
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Summary

Lawmakers cited Tennessee audit findings, Federal Trade Commission reports and out‑of‑state settlements while debating HB 1959; several members said enforcement of existing laws, as well as structural reform, are needed to protect patients and independent pharmacies.

During more than an hour of committee questioning, members repeatedly returned to Tennessee's audit results and to actions in other states as they weighed HB 1959's potential effects. One member referenced an Oklahoma settlement and a Louisiana settlement as evidence states have found problematic PBM practices; another member urged adding stronger enforcement tools to make the law effective in practice.

Committee members and witnesses disputed how often PBMs reimburse independent pharmacies at a disadvantage; members noted audits finding denied appeals and missed rural dispensing fees cited by committee testimony. Several legislators said enforcement of existing statutes has been uneven and argued the committee should consider mechanisms to ensure compliance if structural reforms are passed.