States Pass Laws Targeting Pharmacy Benefit Managers Over Drug Prices

Legislators in at least a dozen states passed laws this year aimed at lowering prescription drug costs by limiting payments to pharmacy benefit managers and requiring them to disclose more financial information. The measures also set minimum dispensing fees that the companies must pay pharmacists.

Lawmakers in 26 states introduced more than 120 bills on the topic, with roughly one-quarter advancing through at least one legislative chamber.

A Tennessee statute scheduled to take effect July 1, 2028, will prohibit pharmacy benefit managers from operating retail pharmacies in the state. CVS Health Corp. has filed a federal lawsuit seeking to block the requirement that would affect its 136 pharmacies there.

A Kansas law requires pharmacy benefit managers to pay a $10.50 dispensing fee per prescription. Louisiana enacted an $11.81 dispensing fee and a separate measure directing the companies to operate for the benefit of health plans and enrollees.

Corp. spent $4 million on advertising opposing the Tennessee measure. The company previously sued Arkansas over similar legislation, resulting in a federal judge blocking that law. CVS Health Corp. also settled three lawsuits brought by Louisiana alleging unfair trade practices in lobbying against legislation, agreeing to pay $45 million without admitting wrongdoing.

A KFF poll conducted earlier this year found that about 6 in 10 U.S. adults were at least somewhat worried about affording their prescriptions. About 4 in 10 said medication costs had led them to skip doses, use substitutes, or forgo filling prescriptions in the prior year.