Tennessee Legislators Passed Pharmacy Ownership Ban

State lawmakers voted to prohibit pharmacy benefit managers from owning retail pharmacies starting in 2028.

Updated on Sept. 28, 2026 in Healthcare

Bold flat-color editorial illustration showing a stylized glass vial and geometric weight, representing pharmacy regulation policy. — Tennessee lawmakers have passed a law prohibiting pharmacy benefit managers from owning retail pharmacies, a move intended to foster local market competition. AI Illustration. Upload story photo >

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Should federal law prohibit pharmacy benefit managers from owning retail pharmacies?

Tennessee lawmakers passed legislation that will prevent pharmacy benefit managers from owning retail pharmacies beginning in 2028. CVS Health, which operates 134 locations in the state, has responded by filing a lawsuit to challenge the new law.

Why it matters

Lawmakers aimed to protect independent pharmacies and foster market competition by addressing corporate integration. State researchers have cautioned that the measure could lead to increased healthcare costs for consumers in the short term.

CVS Health reported annual revenue of $400 billion and operates 134 pharmacies in Tennessee. The company also spent $7 million on a television advertising campaign to oppose the ownership legislation.

The players

CVS Health

This American healthcare company operates a chain of retail pharmacies and manages pharmacy benefits for millions of members.

Bobby Harshbarger

He is a Tennessee state senator who participated in legislative hearings concerning pharmacy benefit manager regulations.

The details

CVS Health utilized text messages to urge customers to contact legislators and funded a $7 million advertising campaign to fight the bill. This follows a broader national trend, as attorneys general from nearly 40 states and territories have petitioned Congress to address pharmacy benefit manager integration.

Arkansas passed a similar pharmacy benefit manager ownership ban in 2025.
Senator Bobby Harshbarger spoke regarding the issue at a legislative hearing in February 2026.
The Tennessee ownership ban is scheduled to take effect in 2028.

Market Landscape

The Tennessee legislation follows a pattern of state-level action set by the 2025 Arkansas pharmacy benefit manager ownership ban. This trend reflects an escalating conflict between corporate pharmacy benefit managers and state regulators seeking to reshape retail pharmacy competition.

While the law does not take effect until 2028, patients may eventually see changes in pharmacy availability or local pricing models. Current legal challenges could delay implementation or force revisions to how pharmacy services are delivered to Tennessee residents.

The takeaway

Legislators across the country are increasingly scrutinizing the integration of benefit managers and retail chains to promote market fairness. Residents should monitor future court rulings that will determine if this ban remains in place before its 2028 start date.