Tennessee § 56-7-3106 - Placement of drug on maximum allowable cost list.
Full text of Tennessee Tennessee Code Annotated § 56-7-3106 — Placement of drug on maximum allowable cost list., with citation guidance and answers to common questions.
§ 56-7-3106. Placement of drug on maximum allowable cost list.
Before a pharmacy benefits manager or covered entity may place a drug on a maximum allowable cost list, the pharmacy benefits manager or covered entity must find that the drug is generally available for purchase by pharmacies in this state from a national or regional wholesaler. If a drug that has been placed on a maximum allowable cost list no longer meets the requirements of subsection (a), the drug shall be removed from the maximum allowable cost list by the pharmacy benefits manager or covered entity within five (5) business days after the date that the pharmacy benefits manager or covered entity becomes aware that the drug no longer meets the requirements of subsection (a). Nothing in this part shall be construed as preventing a pharmacy benefits manager or covered entity from reimbursing claims for a generic drug at the previously determined maximum allowable cost even if the pharmacy benefits manager or covered entity reimburses for the equivalent brand name drug at the contracted brand rate after confirmation by a national or regional wholesaler and by the manufacturer that the generic drug is generally unavailable for purchase from a national or regional wholesaler. Acts 2014, ch. 857, § 2. Code Commission Notes. Acts 2014, ch. 896, § 1 purported to enact § 56-7-3106 . Sections 56-7-3106 — 56-7-3111 were previously enacted by Acts 2014, ch. 857, § 2; therefore, the enactment by Acts 2014, ch. 896, § 1 was designated as § 56-7-3112 by the authority of the code commission. Compiler's Notes. Acts 2014, ch. 857, § 3 provided that this act, which enacted this section, shall apply to all contracts entered into or renewed on or after January 1, 2015.
Source: official Tennessee text · Last verified 2026-08-27
Frequently Asked Questions About Tennessee § 56-7-3106
What does Tennessee Code Annotated § 56-7-3106 cover?
Section 56-7-3106 ("Placement of drug on maximum allowable cost list.") is part of the Tennessee Code Annotated, the codified statutory law of Tennessee. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Tennessee § 56-7-3106?
A common citation format is "Tennessee Code Annotated § 56-7-3106" (Tennessee). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Tennessee law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Tennessee official source linked on this page or consult a licensed Tennessee attorney.
How does Tennessee § 56-7-3106 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Tennessee can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Tennessee.