Republicans and Democrats agreed that one bill will prevent pharmacy middlemen, or PBMs, from undercutting local drug stores.
“It’s just kind of a uniting force for multiple communities that we service,” said Anna Noojin, a second-generation pharmacist at Boaz Discount Drugs in Boaz. Noojin stated that community drugstores have struggled to survive.
“Everyday I sit here and fill prescriptions, and we see them come back in red,” she told me. “We are losing money on prescriptions. The PBMs are paying us less than that.
That is why Alabama Senators approved the Community Pharmacy Relief Act. It would require PBMs to pay local pharmacies what it costs to dispense a drug.
This equates to the drug’s acquisition cost plus the Medicaid reimbursement rate of $10.64. Sen. Billy Beasley (D-Clayton), a pharmacist, said PBMs prevent drugstores from offering lower-cost prescriptions.
“Even though a generic drug may cost half as much,” Beasley said. “And this punishes the consumer. And this bill will address that.”
Robin Stone, of the Alliance of Alabama Healthcare Consumers, disagrees. Stone stated that the reimbursement requirement will be passed down to customers.
“It continues to target our large, marquee employers. Like Hyundai, Honda, Mercedes, and Airbus, and other major corporations that the state has worked so hard to locate and grow in Alabama,” he explained. “They are exposed. And their employee benefit programs are open to a wide range of costs.”
According to Stone, more than 2.7 million people in Alabama receive health insurance through their employers.
“That is an enormous cost to the employers of Alabama that will be passed on to their employees and their families,” Mr. Stone said. “At a time when families don’t need any increases in the cost of living.”
Sen. Andrew Jones (R-Centre) stated that the bill prohibits the fee from being passed down. “I want to make that very clear,” he said. “The actual drug acquisition cost, plus the Medicaid reimbursement, cannot be passed on to the consumer. And anything to the contrary is simply a scare tactic.
If the act is signed into law, it will take effect immediately. However, some reimbursement regulations for PBMs will go into effect on October 1st. The bill is now headed to the House for a committee vote.