Express Scripts Challenges Tennessee Prescription Drug Law
What's happening
Express Scripts, the pharmacy-benefit manager owned by Cigna, filed a lawsuit seeking to block a Tennessee law that affects how prescription drugs are distributed and reimbursed. The company argues the law interferes with its operations and conflicts with federal rules.
What's changing / Business impact
The lawsuit is part of a growing battle between states and pharmacy-benefit managers, commonly known as PBMs. PBMs play a major role in determining which drugs are covered by insurance and how much pharmacies are reimbursed.
Why this matters
PBMs have become one of the most controversial parts of the U.S. healthcare system. Critics argue they contribute to higher drug costs and reduce competition, while PBMs argue they help negotiate lower prices. The outcome of cases like this could influence how prescription-drug benefits are managed across the country.