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Bill

SB 1796

Insurance, Health, Accident - As introduced, directs the commissioner of commerce and insurance to publish and submit to the general assembly on or before October 1, 2026, a report containing data on alleged statutory violations by pharmacy benefits managers during the previous fiscal year for failing to meet requirements for timely reimbursements to pharmacies; the report must include data on the number of alleged violations reported, the commissioner's findings from any ensuing investigations, and any penalties imposed for findings of violations. - Amends TCA Title 56, Chapter 7, Part 31 and Title 56, Chapter 7, Part 32.

114th Regular Session (2025-2026)

Tennessee requires insurance commissioner to investigate and report PBM reimbursement violations to pharmacies, detailing findings and penalties by October 2026.

Introduced, Passed on First Consideration
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Bill Summary · SB 1796

Legislative bill overview

SB 1796 requires Tennessee's insurance commissioner to investigate and report on pharmacy benefits managers (PBMs) that allegedly violate state laws requiring timely reimbursement to pharmacies. The commissioner must submit a comprehensive report by October 1, 2026, detailing violations found, investigation outcomes, and any penalties imposed.

Why is this important

Pharmacy reimbursement delays can strain independent and small pharmacy operations, potentially affecting medication access and local healthcare services. This oversight mechanism aims to hold PBMs accountable and provide transparency about compliance with existing state payment requirements, informing future policy decisions about PBM regulation.

Potential points of contention

  • Enforcement clarity: The bill requires reporting on violations but doesn't explicitly establish new enforcement powers or penalties, raising questions about what consequences the commissioner can actually impose
  • Scope and resources: Determining what constitutes "alleged" violations and conducting investigations may require significant commissioner staff resources without specified funding
  • Industry impact: PBMs may argue the reporting requirement creates additional administrative burden and could lead to unfair characterization of complex reimbursement disputes as violations

Compiled from official sources — confirm details with the bill’s official record.

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