Fair RX Act supporting local pharmacies heads to governor’s desk

JACKSON, Tenn. — Where you fill your prescriptions could soon be up to you. A bill that passed the Legislature in Tennessee would break up the powerful middlemen who control which pharmacies see you and how much the pharmacies are paid.

“When you support local the pharmacist in your community are going to support you,” said Dr. Jay Phipps, independent pharmacist and owner of Phipps Pharmacy.

This is a community pharmacy and across Tennessee nearly 600 of them have closed since 2017.

Senate Bill 2040, also known as the Fair RX Act, would limit PBM owned pharmacies from operating in the state. PBM’s are like middlemen they go between insurance companies, employers, and patients.

Right now, in Tennessee, PBM’s currently own everything in the marketplace including their own pharmacies, so they direct patients to them instead of local pharmacist.

Since the start of his career, Dr. Jay Phipps has been an independent pharmacist and he tells us how PBM’s have affected his practice.

“PBM’s are like that intermediary between us an insurance companies, so they contract with us and they also contract with the other big chains. What they are doing is going out and contracting with us and telling us what we can get paid and which patients can come see us,” said Phipps.

Senate Bill 2040 passed on the Senate floor Monday with 24 ayes and nine nays and it also passed on the House floor Tuesday with 86 ayes and seven nays.

Since it was passed, Phipps tells us how he believes it would improve his business and care for other patients.

“What it is going to do is make a fair and level playing field.  Right now, because PBM’s own everything in the market place, including their own pharmacies they direct patients to their own pharmacies, so this would allow patients to choose. With a level playing field, I think the customer experience, the patient experience is going to improve and allow us to take better care of patients,” said Phipps.

One big chain pharmacy that is owned by a PBM is CVS Pharmacy. Since the bill passed in the Legislature, CVS Pharmacy says it will cause them to “Close 25 minuteclinic locations and have a loss of more than 2,000 jobs.”

Since it passed in the Tennessee Legislature, Senate Bill 2040 will now head to Governor Bill Lee’s desk.

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