NASHVILLE, Tenn. (WOKI/WVLT) — A major change to Tennessee’s prescription drug landscape is now in motion after Governor Bill Lee signed the “Fair Rx Act” into law.
The new law signed Friday creates a pathway to prevent companies from owning pharmacies while also controlling pharmacy benefit managers and health insurers in the state. Supporters say the move is designed to limit the influence of large corporations and improve fairness in how prescription drugs are priced and delivered.
The law will not take effect immediately. It is scheduled to go into effect July 1, 2028.
The Tennessee Pharmacists Association praised the measure, saying it will restore transparency and promote better patient choice.
However, the law is already facing strong opposition from CVS, which says it could have major consequences for access to care.
In a statement, CVS warned the law could force more than 100 of its pharmacy locations in Tennessee to close and claims it will increase prescription drug costs for employers by more than $180 million annually.
The company also announced plans to challenge the law in federal court, calling it unconstitutional and arguing it unfairly targets its business model.
Despite the pushback, supporters maintain the law is a necessary step to reshape how prescription drug services are controlled across the state.
The legal battle over the measure is expected to unfold well before the law takes effect in 2028.
