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Insurance committee advances bill to bar PBM‑owned pharmacies; sponsors cite conflict of interest
Summary
The House Insurance Committee voted 16–3 to advance HB 1959, the "Fair Rx Act," which would bar a single corporate structure from both controlling pharmacies and pharmacy benefit managers or covered insurers in Tennessee beginning Jan. 1, 2028; supporters say it protects independent pharmacies from discriminatory reimbursement.
On March 10, 2026, the Tennessee House Insurance Committee voted to advance HB 1959, titled the "Fair Rx Act," after testimony from sponsors, industry groups and community advocates. Sponsor Representative Scarborough said the bill "separates financial control from patient care decision making" and that, starting Jan. 1, 2028, "the same corporate structure cannot control a pharmacy and control a pharmacy benefit manager or a covered insurer in Tennessee."
The bill includes a delayed effective date, a structured divestiture window and civil penalties for enforcement rather than criminal sanctions, Scarborough told the committee. Committee members discussed potential market consequences — including whether companies could choose to sell a PBM or sell pharmacies — but members who supported the measure said separating ownership would protect independent pharmacies from conflicts of interest. The clerk reported the committee vote as "16 ayes and 3 nays," and HB 1959 now moves to the Government Operations calendar for further consideration.
