Independent pharmacies in Alabama are facing closures due to the reimbursement rates they receive from pharmacy benefit managers not covering the cost of dispensing drugs. Senator Billy Beasley highlighted that nearly one pharmacy per week is going out of business due to this issue. The Alabama Senate has voted in favor of legislation that would set minimum reimbursement rates for community pharmacists, which is also being considered in other states like Mississippi and Arkansas.
Pharmacy benefit managers work to reduce drug costs for consumers, but independent pharmacists argue that their business practices lead to losses on about 20% of prescriptions. The proposed Alabama bill would require PBMs to reimburse pharmacies at the Alabama Medicaid Agency rate and prohibit “spread pricing” practices. However, opponents argue that this would result in increased prescription fees for consumers and businesses, especially small businesses already struggling with insurance costs.
Despite opposition, the bill’s co-sponsor, Senator Andrew Jones, believes that regulation could lower drug prices and protect the role of independent pharmacies in communities. Jones stressed the importance of having nearby pharmacies accessible at all times for the public’s healthcare needs. The issue remains a topic of debate with concerns about balancing fair reimbursement rates for pharmacists while ensuring affordable access to medication for consumers.
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