CVS to Close 134 Pharmacies in Tennessee Under New PBM Bill

Legislation aims to rein in pharmacy benefit managers, but critics say it will hurt patient access.

Published on Mar. 2, 2026

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CVS Health has announced plans to close 134 pharmacy locations across Tennessee in response to a new state law targeting pharmacy benefit managers (PBMs). The law, passed in 2025, aims to increase transparency and regulate the practices of PBMs, which manage prescription drug benefits for health plans.

Why it matters

The closures will significantly impact patient access to pharmacies, especially in rural and underserved areas of the state. Critics argue the law will disrupt the healthcare system and lead to higher costs for consumers, while supporters say it's necessary to rein in the power of PBMs.

The details

Under the new Tennessee law, PBMs will face new restrictions, including limits on the fees they can charge pharmacies and requirements to disclose more information about their operations. CVS, one of the largest PBMs in the country, has decided to shutter 134 of its pharmacy locations across the state in response to the legislation.

  • The Tennessee law targeting PBMs was passed in 2025.
  • CVS announced the 134 pharmacy closures in Tennessee on March 2, 2026.

The players

CVS Health

A major pharmacy chain and one of the largest pharmacy benefit managers (PBMs) in the United States.

Tennessee Legislature

The state government body that passed the law regulating pharmacy benefit managers in 2025.

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What they’re saying

“This law will disrupt the healthcare system and lead to higher costs for consumers who rely on these pharmacies.”

— Spokesperson, CVS Health (The Tennessean)

“The new regulations are necessary to rein in the power of PBMs and ensure patients have access to affordable medications.”

— State Senator, Tennessee Legislature (The Tennessean)

What’s next

The Tennessee Legislature is expected to consider further amendments to the PBM law in the upcoming legislative session.

The takeaway

The clash between CVS and Tennessee's new PBM regulations highlights the ongoing debate over the role and practices of pharmacy benefit managers in the healthcare system, with concerns over patient access and affordability on both sides.