RxCare of Tennessee, Inc; Consent Agreement With Analysis To Aid Public Comment

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In settlement of alleged violations of federal law prohibiting unfair acts and practices and unfair methods of competition, this consent agreement, accepted subject to final Commission approval, would bar the leading provider of pharmacy network services in Tennessee from having ``most favored nation'' clauses in its pharmacy participation agreements. The draft complaint accompanying the consent agreement alleges that RxCare's use of these clauses discourages the pharmacies from discounting and thereby limits price competition among the pharmacies in their dealings with pharmacy benefits managers and third- party payers.