CVS sues Tennessee, challenging new state PBM monopoly law

CVS Health is suing the state of Tennessee over its new pharmacy benefit manager law, which the company argues effectively creates a state-sponsored PBM monopoly. The lawsuit claims the law violates the federal Employee Retirement Income Security Act (ERISA) and the Commerce Clause. The outcome of this legal challenge will set a precedent for similar state-level PBM regulations, which directly impact pharmacy network contracts and prescription drug reimbursement for commercially insured patients. Watch for similar legal challenges in other states with restrictive PBM legislation.