Gov. Bill Lee (R-Tenn.) signed the Freedom, Access and Integrity in Registered Pharmacy (FAIR Rx) Act into law on Friday, making Tennessee the second state to pass legislation prohibiting PBMs from owning or operating pharmacies. This comes after a hard-fought battle during which PBMs and their allies reportedly spent over $7 million and hired more than 60 additional lobbyists for their campaign opposing the legislation.
NCPA supported the Tennessee Pharmacists Association’s leadership on the FAIR Rx Act as it moved through the legislative process and congratulates the TPA on its momentous accomplishment.
“An enormous conflict of interest exists when a giant corporate PBM or insurance plan owns and operates its own pharmacy,” said NCPA CEO Douglas Hoey, pharmacist, MBA. “This legislation simply gives these health care giants a choice — you can be a PBM or you can be a pharmacy, but you can’t be both.”
A similar bill was signed into law in Arkansas in 2025. A federal bill to require companies that own health insurers or PBMs to divest their pharmacy businesses was reintroduced in Congress on May 13.
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