This bill could force CVS to chose between its stores and PBMs

WOONSOCKET, R.I. — A proposal within the Tennessee legislature might power CVS Well being to sever a core piece of its enterprise mannequin or exit the state completely, and it’s rising as a key check of how far lawmakers nationally is likely to be prepared to go to rein in pharmacy profit managers.

Pharmacy profit managers, or PBMs, play a key function negotiating drug costs, processing pharmacy claims, dealing with prescription authorizations, and managing drug advantages for well being insurers and employers. Along with proudly owning roughly 9,000 retail pharmacy areas throughout the US, CVS Well being owns Aetna, a well being insurer, and Caremark, a PBM.

The Tennessee invoice would prohibit a single firm from proudly owning each a retail pharmacy and a pharmacy profit supervisor. If enacted, Woonsocket, R.I.-based CVS says it might shut greater than 130 shops in Tennessee, placing greater than 2,000 jobs in danger.