Alabama House passes bill lawmakers say could save drugstores
MONTGOMERY, Ala. (WIAT) — Every time you fill a prescription, you might not know your pharmacist has to pay a price to get it to you.
Pharmacy benefit managers, or PBMs, play a large part in how much money pharmacies get back for making that happen. Lawmakers are cracking down on PBMs and said they want to help main street drug stores make ends meet.
'We've got relationships with those patients, and we're having to explain to them why their pharmacy is disappearing,' said Josh Hardin, pharmacist and owner of Mills Pharmacy in Hoover. 'So it was a hard decision, but it was one that we ultimately had to make.'
Hardin said that decision was shutting down one of his drug stores last year. He said PBMs have made it difficult for some to stay open.
'We're essentially competing with the companies that administer the pharmacy benefit for your insurance,' Hardin said. 'They have their own pharmacy operations.'
Pharmacies like Hardin's have caused the legislature to take action. Representatives passed a bill Tuesday requiring PBMs to reimburse pharmacies at least $10.64 on every prescription. That's the Medicaid reimbursement rate. State Rep. Phillip Rigsby (R-Huntsville), who sponsored the bill in the House, said it makes it fair for every pharmacy.
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'So I think everybody understands we've got to make sure that those patients continue to have access that their local pharmacies and make sure the PBMs are paying a fair reimbursement,' Rigsby said.
Some groups, like the Alliance of Alabama Healthcare Consumers, have warned the fee will be pushed down to the patients. Rigsby said, however, his bill prohibits that.
'This is a step forward, I believe, in helping employers, patients and pharmacies start to see transparency in this system,' Rigsby said.
State Rep. A.J. McCampbell (D-Livingston) agreed. He said something needs to be done to help rural drugstores.
'The small mom and pop — your neighbor, my neighbor — can stay in business and provide a tax base also for our communities,' McCampbell said.
The bill now heads back to the Senate for final passage.
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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