State Policy
Tennessee, Arkansas Move to Regulate Pharmacy Benefit Managers
Tennessee and Arkansas are advancing new state regulations targeting pharmacy benefit managers (PBMs), the companies that negotiate drug prices and manage prescription benefits for insurers and Medicaid plans. The push reflects rare bipartisan agreement, with both Republican and Democratic lawmakers and patients expressing frustration over PBM practices they say drive up drug costs and squeeze independent pharmacies. The article does not specify an effective date or the precise mechanisms (e.g., licensing, spread-pricing bans, fee caps) being adopted in each state. The trend signals growing state-level appetite to constrain PBM business practices amid broader national scrutiny of the industry.
Why it mattersState Medicaid agencies and MCOs that contract with or oversee PBMs will need to track new state-level requirements that could affect pharmacy network terms, reimbursement methodologies, and compliance obligations.