New law protects patient access and affordability, ensuring a level playing field for Tennessee pharmacies.

Governor Bill Lee signed SB 2040/HB 1959, the Tennessee Freedom, Access, and Integrity in Registered Pharmacy Act (FAIR Rx), led by Sen. Bobby Harshbarger (R-04), into law today, delivering another important step to protect pharmacy access and patient care. The legislation, which received overwhelming bipartisan support in both chambers of the General Assembly, prohibits a single company from simultaneously operating a health plan, pharmacy benefit manager (PBM), and pharmacy. Ensuring that no single company controls all three creates a fairer playing field for Tennessee pharmacies and the patients they serve - one that preserves patient choice, supports competition, and helps keep costs manageable for Tennessee families.

The FAIR Rx Act passed the Tennessee Senate by a 24-9 vote and the Tennessee House by an 86-7 vote. The law will take effect July 1, 2028.

The FAIR Rx Act draws a clear line: a company cannot simultaneously hold more than a five percent ownership interest in both a PBM and a health insurer while also operating a pharmacy in Tennessee. By separating overlapping financial interests, the law helps reinforce fair competition and supports continued access to pharmacy care for communities across Tennessee.

Throughout the legislative process, the Tennessee Pharmacists Association (TPA) played a vital leadership role in advocating for the bill's passage. NACDS is proud to have worked alongside TPA and the bill sponsors to help advance meaningful reforms that will protect patients and pharmacies.

"The signing of the FAIR Rx Act is a testament to what is possible when lawmakers, stakeholders, and advocates come together around good public policy," said NACDS President and CEO Steven C. Anderson. "This landmark law takes a meaningful step toward ensuring that the rules governing pharmacy reimbursement are set fairly, supporting a marketplace where pharmacies can compete and patients can continue to access the care they need. We are grateful to the members of the General Assembly for their leadership and overwhelming bipartisan support, and to Governor Lee for signing this important legislation into law."

More information about NACDS' focus on PBM reform is available at the Association's Access Agenda website.