Tennessee – Pharmacies Required to Collect Sales Tax on Diabetic Supplies

SALT Report 2461 – The Tennessee Governor signed a Bill into law that requires a pharmacy benefits manager or a covered entity, to permit a pharmacist or pharmacy to collect sales tax on any prescription diabetic supplies sold. If the pharmacy benefits manager or a covered entity fails to permit the pharmacy or pharmacist do so, the pharmacy benefits manager will be required to collect and remit any tax from the monies received from a patient’s co-payment or coinsurance.

The Bill defines “diabetic supplies” as lancets, test strips for blood glucose monitors, and visual reading and urine test strips for diabetes for human use.

The provisions in Senate Bill 962 were effective April 30, 2013.

For Further Information

Tennessee General Assembly – Senate Bill 962