Insurance, Health, Accident - As enacted, removes the aggregate penalty limits for violations of law concerning pharmacy benefits managers; provides that a pharmacy benefits manager regulated under law relative to pharma, the official text

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                             PUBLIC CHAPTER NO. 446

                                                     SENATE BILL NO. 881

                                                      By Reeves, Campbell

                                            Substituted for: House Bill No. 1244

         By Brock Martin, Behn, Terry, Helton-Haynes, Eldridge, Keisling, Fritts, Farmer, Howell

AN ACT to amend Tennessee Code Annotated, Title 56, relative to pharmacy benefits managers.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 56-7-3110, is amended by deleting the
language "sanctions described in § 56-2-305" and substituting "sanctions described in § 56-2-305,
subject to§ 56-2-305(c)(7)".

          SECTION 2. Tennessee Code Annotated, Section 56-2-305(c), is amended by adding the
following as a new subdivision:

                    (7) Violations by a pharmacy benefits manager, as defined in § 56-7-3102.

          SECTION 3. Tennessee Code Annotated, Title 56, Chapter 7, Part 31, is amended by adding
the following as a new section:

          56-7-3124. Timely reimbursements of health insurance claims.

                    (a) A pharmacy benefits manager regulated under this part is subject to § 56-7-109
          and its requirements for timing of payments to pharmacists.

                    (b) Notwithstanding the penalties set out in this part, a violation of the prompt pay
          standards is governed by the penalties set out in§ 56-7-109.

          SECTION 4. The headings in this act are for reference purposes only and do hot constitute a
part of the law enacted by this act. However, the Tennessee Code Commission is requested to
include the headings in any compilation or publication containing this act.

          SECTION 5. This act takes effect upon becoming a law, the public welfare requiring it, and
applies to conduct occurring on or after the effective date of this act.
         SENATE BILL NO. 881

PASSED:  April 21, 2025

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                             \ .., • RANDY ~cNALLY
                                 SPEAKER OF THE SENATE

              ...._........~r

                           CAMERONSEXTON,SPEAKER
                         HOUSE OF REPRESENTATIVES

APPROVED this ~day of                        2025

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                         BILL LEE, GOVERNOR