In an attempt to slow the closure of small, independent pharmacies throughout the state, Alabama lawmakers voted Tuesday to impose new rules on pharmaceutical benefit managers (PBMs).
The proposed law was approved 102-0 in the Alabama House of Representatives, resulting in a unanimous vote. In order to relieve the financial strain on independent pharmacists, this bill will now be forwarded to Governor Kay Ivey of Alabama for final approval.
In the pharmaceutical sector, pharmacy benefit managers (PBMs) operate as go-betweens, negotiating prescription medication benefits with insurance providers and pharmaceutical manufacturers.
Their job is to use their purchasing power to lower the cost of prescription drugs for patients.
Nonetheless, a large number of independent pharmacists contend that PBMs’ prescription drug reimbursement rates are inadequate, frequently leaving them with little to no profit and occasionally even making them lose money when they dispense prescription pharmaceuticals.
By mandating that PBMs pay independent pharmacies at least the state Medicaid rate for prescription medications, the new law seeks to address this problem.
This action is viewed as a crucial reaction to the continuous closures of local pharmacies, especially in Alabama’s rural communities.
Many independent pharmacies throughout the state have had to close their doors in the last two years, mostly as a result of financial difficulties brought on by poor PBM reimbursement rates.
When the payment they receive for dispensing drugs is less than the cost of purchasing and filling the prescriptions, many of these businesses cannot survive, according to the Alabama Independent Pharmacy Alliance (AIPA), which advocates for independent pharmacists in the state.
PBMs are enforcing business tactics that result in financial losses, particularly on generic pharmaceuticals, according to independent pharmacists.
They calculate that because PBMs establish low reimbursement rates, pharmacies lose money on around 20% of prescriptions.
In rural areas, where access to healthcare alternatives is already limited and the population is smaller, these practices have had a particularly negative impact on pharmacies.
Many of these pharmacies are consequently closing, which further limits communities who mostly depend on independent, local providers’ access to necessary pharmaceuticals.
The new rules follow a nationwide trend in which other states, such as Mississippi and Arkansas, are also thinking about enacting legislation of a similar nature to control PBMs and safeguard independent pharmacies.
The action taken by Alabama coincides with increased apprehension regarding the influence of PBMs and their impact on independent pharmacies’ viability.
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Lawmakers in Alabama and other states are working to make sure independent pharmacies can continue to operate profitably and offer necessary medical services, particularly in rural areas that are underserved.
The greater objective of safeguarding small pharmacies and enhancing healthcare accessible is in line with the proposed bill’s emphasis on providing a fair reimbursement rate.
If enacted, Alabama would become one of the several states attempting to regulate PBMs, offering a potential template for other states dealing with same issues.
Whether the new rules can successfully address the concerns of independent pharmacists and aid in the preservation of these significant healthcare providers throughout the state will depend on Governor Ivey’s judgment on the bill.
Source: AP News
