Governor Bill Lee signed the FAIR Rx Act into law Friday. Hours later, CVS filed a federal lawsuit seeking to overturn it.
The law — Senate Bill 2040 — prohibits pharmacy benefit managers from owning pharmacies in Tennessee. CVS is the only company in the state that currently does both. It owns CVS Caremark, one of the largest pharmacy benefit managers in the country, and 134 retail pharmacies across Tennessee. Under the new law, CVS would have until July 1, 2028 to choose between the two — or exit the state.
CVS says it cannot separate the two businesses and keep both viable. The company’s lawsuit, filed Friday afternoon in the Middle District of Tennessee federal court, argues the law is unconstitutional, targets out-of-state businesses unfairly, and will ultimately hurt the 1.5 million Tennessee patients who rely on CVS pharmacies…