Tennessee's SB 2040 bill would prohibit companies like CVS Health from simultaneously owning pharmacies and a pharmacy benefit manager (PBM) like Caremark[2][3][4]. This bill would force CVS to choose between operating its pharmacies and PBMs in the state[1][2]. CVS Health has announced that it will close 134 Tennessee pharmacies beginning March 2, 2026, in response to a similar 2025 law.[1][3] According to CEO David Joyner, Caremark cannot be discontinued in just one state because it serves 87 million Americans across the country[2][3]. Lawmakers, including Sen. Bobby Harshbarger, say this is to eliminate a conflict of interest where PBMs pay their own pharmacies more than others.[3][4][5] Caremark paid its own pharmacies up to 16,000% more for some drugs[3]. The law is currently suspended pending further financial review[4][5].