‘We're fighting to keep them open': pharmacies across the state struggle to make ends meet

Yahoo

25-02-2025

ALABAMA (WHNT) — Bags crinkling and staplers snapping are heard less and less at pharmacies across Alabama.
Pharmacists in the state, like Bob Giles with the Alabama Pharmacy Association, said they are not reimbursed properly by Pharmacy Benefit Managers, or PBMs. In short, they said they lose money when they fill prescriptions for patients.
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'There's not a business out there, health care provider or otherwise, that can continually be paid less than the cost of dispensing or less than the cost to provide that service and stay in business,' Giles said.
Roughly 13% of drugstores across Alabama have closed since 2018, according to the Alabama Independent Pharmacy Alliance.
In response to the complications and challenges within the pharmacy industry in recent years, some local pharmacies are temporarily shutting their doors on February 25 at 1 p.m. The walkout is in support of Senate Bill 93, a bill proposing to reform the current payout structure.
'93 is a very, condensed version of the Fair Meds Act that was introduced last year in the House,' Giles said. 'So it addresses reimbursement. It addresses transparency and the ability to tell the truth, gets rid of the fees associated with network participation and then has enforcement.'
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While most pharmacies feel the impacts of current state policies, not all are participating in the walkout, such as Huntsville's own Star Discount Pharmacy.
Trent McLemore, the Director of Star Discount Pharmacy, said they support all reform efforts. He added that the pharmacy has made an effort to educate all their patients about the struggles pharmacies face over the last 11 months. Because of those efforts, he said participation in the protest seemed unnecessary.
'I felt it sent the wrong message to close our doors when we're fighting to keep them open,' McLemore said.
McLemore presented to the Senate Banking and Insurance Committee on February 19 in favor of reform, focused on the protections Star Discount Pharmacy has at its Tennessee location. He said they have sent roughly $12 million across state lines since August to keep their doors in Alabama open.
'They passed legislation in Tennessee to protect their pharmacies, all pharmacies, from being paid below cost,' McLemore told News 19. 'As a result, we've sent quite a number of prescriptions, a lot of business to our Tennessee store. It's been able to allow us to keep our patients here, not turn them away. Not tell them they have to find their medication elsewhere because we're taking a loss.'
McLemore's presentation showed support for Senate Bill 99, not 93. He said the two have a lot of similarities in the reform they want for pharmacies, but that SB 99 offers protections for employers.
'SB 99 and SB 93 both protect the patient from any increase in cost,' McLemore said. 'SB 99 also protects the employer by requiring rebates to be passed back to them. Employers, patients, pharmacies, everybody wins except for the PBMs.'
McLemore emphasized the importance of having local pharmacies in the community.
'We, as independent pharmacies, show up after hours and take care of somebody,' McLemore said. 'We're the ones that, you know, take care of you when no one else will.'
Giles said the reforms proposed in state legislation do not affect any federally funded healthcare plans, such as Medicare.
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