SB 2577

Present authorizes the bureau of TennCare to develop prescription drug programs and to contract with one or more pharmacy benefit managers ( " PBM "" ) or other appropriate third party contractors to administer all or a portion of such programs for TennCare. This bill prohibits the bureau from contract ing with a PBM if the PBM has been disciplined by the department of finance and administration or the department of commerce and insurance. This bill also prohibits the state insurance committee, the local education insurance committee, and the local government insurance committee from contracting with a PBM if the PBM has been disciplined by the department of finance and administration or t he department of commerce and insurance. PROHIBITED CONTRACTING BY PBM This bill prohibits a PBM from contract ing for a service with a department, agency, or entity of this state if the PBM has been disciplined by the department of finance and administration or the department of commerce and insurance. APPLICABILITY Th e prohibition s described above appl y to contracts entered into, amended, or renewed on or after July 1, 2026."