A major Tennessee PBM reform bill has officially passed the state legislature and now awaits the governor’s signature. The legislation, which would prohibit pharmacy benefit managers (PBMs) from owning pharmacies, marks a significant development in the ongoing push for PBM reform.
In the latest episode of the PBM Reform Podcast, Tennessee Pharmacists Association CEO Anthony Pudlo joins APCI’s Greg Reybold, VP of Healthcare Policy, to break down what the bill means for independent pharmacies, patients, and payers.
What the Tennessee PBM Reform Bill Would Do
The legislation targets one of the most controversial aspects of the pharmacy marketplace: vertical integration between PBMs and pharmacies.
If signed into law, the bill would:
- Prohibit PBMs from owning or operating pharmacies
- Address conflicts of interest tied to patient steering
- Help level the playing field for independent pharmacies
This type of reform is gaining traction nationwide as policymakers examine the role of PBMs in rising healthcare costs and reduced patient access.
Why the Bill Gained Strong Legislative Support
During the podcast discussion, Pudlo outlines several issues that helped drive overwhelming support from lawmakers:
- Low reimbursement rates that challenge pharmacy sustainability
- Patient steering practices that limit consumer choice
- Financial pressure on government programs and payers
- Access concerns for patients in rural and underserved communities
These challenges are not unique to Tennessee and continue to fuel PBM reform efforts across the country.
The Role of Public Policy Engagement and Relationship Building
The passage of the bill reflects years of sustained public policy engagement by pharmacists and advocates.
The Tennessee Pharmacists Association built momentum through multiple legislative efforts, ongoing education of policymakers, and consistent relationship building with key decision-makers.
Pudlo emphasizes that these long-term efforts were critical to moving the legislation forward.
Industry Pushback and What Comes Next
Like many PBM reform initiatives, the bill has faced opposition from stakeholders who argue against restrictions on PBM operations.
With legislative approval secured, attention now turns to the governor’s office. If signed into law, the measure could serve as a model for similar efforts in other states.
Listen to the Full Podcast Episode
For a deeper look at the Tennessee legislation and the broader PBM reform landscape, listen to the full episode of the PBM Reform Podcast.
For more insights on PBM reform and how it impacts independent pharmacies, explore APCI’s Public Policy resources.