Insurance, Health, Accident - As introduced, prohibits a pharmacy benefits manager from contracting with a state department, agency, or entity if the pharmacy benefits manager has been disciplined by the department of finance and administration or the department of commerce and insurance. - Amends TCA Title 4, Chapter 3; Title 8, Chapter 27; Title 56 and Title 71.

SB 2577 prohibits Tennessee state departments, agencies, and entities from contracting with pharmacy benefits managers (PBMs) that have been disciplined by the Department of Finance and Administration or the Department of Commerce and Insurance. The bill amends Tennessee law to apply this restriction to TennCare (Section 1), state committees (Section 2), and all state departments/agencies (Section 3). It takes effect July 1, 2026, applying to new, amended, or renewed contracts after that date. This directly affects state health programs and agencies that work with PBMs, requiring them to avoid vendors with prior disciplinary actions.