RxPreferred Denies Role in Tennessee PBM Legal Battle
Nashville-based pharmacy benefit administrator RxPreferred has formally distanced itself from ongoing litigation surrounding Tennessee’s vertical integration ban. The company, which was recently named in lawsuits filed by the Pharmaceutical Care Management Association, asserts that it is not a party to the proceedings and remains entirely independent from the industry conflicts being challenged.
The company maintains that its business structure is fundamentally incompatible with the practices currently under legal scrutiny. Unlike traditional pharmacy benefit managers, RxPreferred does not own or affiliate with insurers or pharmacies. This independence was a key factor in the firm's decision to testify in favor of Tennessee’s FAIR Rx Act, which seeks to dismantle the control vertically integrated entities exert over pharmacy access, pricing, and reimbursement.
President and CEO Jeff Malone stated that the firm’s inclusion in recent legal filings stems from a lack of research by the plaintiffs. According to the company, its pass-through model is designed to eliminate the misaligned incentives that often arise when a single entity controls the entire supply chain. RxPreferred emphasizes that its operational focus remains on providing employers and health systems with the flexibility to customize benefit strategies without the influence of affiliated business interests.
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