Forced Pharmacy Closures Put Pharmacies Before Patients

Independent pharmacists in the legislature, backed by Big Pharma interests, are advancing new proposals. Namely, mandates that restrict employers’ ability to design self-funded health plans that meet their workforce’s needs. The result would be widespread pharmacy closures- a consequence that affects far more than just employers.

What are forced pharmacy closures?

Arkansas decided that pharmacies cannot also operate as a PBM. Because of this ruling, CVS Caremark has threatened to close 23 brick-and-mortar locations. Advocates argue this will reduce conflicts of interest between pharmacies and protect local businesses, but patients and employers know better.

These policies most affect those who rely on mail-order services as well as specialty and chain pharmacies, including veterans, individuals with chronic illnesses, and seniors. The closure of any pharmacy would force customers to travel to the next closest location, which may be hours away. .

Senator Bobby Harshbarger wants this reality for Tennessee. He is advocating for a sweeping restriction that would result in similar forced pharmacy closures. We have already seen the consequences for patients in Arkansas. Patients who rely on rare and specialty drugs face long-term access risks, as these medications are often available only through pharmacies like CVS Caremark and Express Scripts. Is this the reality we want our veterans and seniors to face?

Why should employers care?

Regardless of whether you employ seniors or veterans, prescription access is valuable to most, if not all, employees. Such legislation will force hundreds of high volume pharmacies to close, leaving employees traveling farther for life-saving medications, and employers having to bear the costs. Limiting pharmacy options would strip away negotiated discounts and mail-order benefits, forcing up costs for specialty drugs.

The implications of forced pharmacy closures include employees needing to leave work early or arrive late, along with a long-term decline in overall health and wellness. Stress from barriers to prescription access will also affect workplace performance. Reduced pharmacy competition may weaken negotiating power, driving up prescription costs for employer-sponsored health plans. In rural or underserved areas, fewer local pharmacies could make communities less attractive to prospective workers.

Why TEBA cares:

Forced pharmacy closures don’t just disrupt patients. They create new costs and challenges for employers. Fewer pharmacy options mean higher drug prices, lost discounts, and more time away from work as employees travel farther for care. These barriers drive up health plan expenses and make it harder to attract and retain talent, specifically in rural communities. TEBA believes Tennessee employers can stop these harmful restrictions and protect affordable, flexible benefits for our workforce.

Join TEBA HERE today and help protect the benefits that Tennessee families rely on.