CVS Health has warned it could close all 134 of its pharmacies in Tennessee if a new state bill, Senate Bill 2040, is passed by lawmakers.
The proposed legislation aims to prohibit the co-ownership of pharmacies and pharmacy benefit managers (PBMs), which act as middlemen between pharmacies, health insurers, and drug manufacturers.
CVS Health argues the bill would force the closure of its pharmacies, impacting over 1.5 million patients, leading to more than 2,000 job losses, and shutting down 25 in-store MinuteClinic locations.
Senator Bobby Harshbarger, the bill's sponsor, states the legislation addresses conflicts of interest where PBMs can own pharmacies while also influencing patient choice and disadvantaging local pharmacies.
A similar bill in Arkansas was previously halted by a federal judge who ruled it likely violated the US Constitution's Commerce Clause, though Tennessee's SB 2040 has passed the state's Senate Health and Welfare Committee.
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CVS warns it could close all 134 locations in a single state if new bill goes ahead
