Tennessee House Bill HB2331

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Refer: 2/5/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 3; Title 8, Chapter 27; Title 56 and Title 71, relative to pharmacy benefits managers.

Impact

The bill, effective July 1, 2026, signifies a notable shift in how the state will manage relationships with pharmacy benefits managers, emphasizing the importance of compliance and integrity within the healthcare supply chain. By instituting these restrictions, Tennessee aims to ensure that only compliant and principled PBMs can engage in business with state health programs. This could potentially lead to improved management of pharmaceutical benefits and ultimately better health outcomes for beneficiaries under TennCare.

Summary

House Bill 2331 aims to amend several sections of the Tennessee Code Annotated concerning pharmacy benefits managers (PBMs). This legislation introduces specific restrictions on the ability of state departments and agencies to contract with PBMs based on disciplinary actions taken against these managers. Specifically, if a PBM has been disciplined by the Department of Finance and Administration or the Department of Commerce and Insurance, they would not be permitted to enter into contracts with TennCare or other governmental entities. The overarching intention is to enhance oversight and maintain accountability in PBM practices, thus protecting the interests of the state's health programs.

Contention

While the intent of HB2331 is to safeguard state interests and patient welfare, it could generate contention regarding its implications for existing contracts and the operational capacity of pharmacy benefits managers. Some stakeholders may argue that these provisions could limit competition and lead to higher costs for the state if there are fewer eligible PBMs available to serve governmental programs. Additionally, concerns might arise about the transparency and objectivity involved in determining the discipline of PBMs, which could influence the ability of these businesses to participate in state contracts.