Latest news with #AlabamaIndependentPharmacyAlliance
Yahoo
16-04-2025
- Health
- Yahoo
Governor Ivey officially signed bill helping save Alabama pharmacies
ALABAMA (WDHN) – Governor Ivey has officially signed the Senate's 'Community Pharmacy Relief Act,' which is aimed to deflect the influence of Pharmacy Benefit Managers, also known as PBMs. PBMs are managers of prescription benefits between insurance companies and employers. The bill raises the concern that PBMs reimburse pharmacies at low rates, even below the cost of dispensing medications. The new law even prohibits PBMs from paying pharmacists less than Medicaid does and from charging miscellaneous fees. Pharmacists said PBMs have been paying not enough to the point they don't even cover the cost of the drugs they are providing. The Alabama Independent Pharmacy Alliance said roughly 13% of pharmacies in the state have closed since 2018. The bill passed unanimously with full support in both the Alabama Senate and House of Representatives. With Governor Ivey's signature of the bill, it has the green light and is now officially apart of the law Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Associated Press
09-04-2025
- Business
- Associated Press
Alabama approves regulations on pharmacy benefit managers in order to help small pharmacies
MONTGOMERY, Ala. (AP) — Alabama lawmakers on Tuesday voted to put new regulations on pharmacy benefit managers in an effort to curb the closure of small pharmacies across the state. The Alabama House of Representatives voted 102-0 for the proposal that will require pharmacy benefit managers to reimburse independent pharmacists at least at the state Medicaid rate for prescription drugs. The bill now goes to Alabama Gov. Kay Ivey. 'This has been a win for the people of Alabama. It's been a huge win for the community pharmacists in the state of Alabama who just want to be able to go to work, make a living and take care of their patients,' Sen. Billy Beasley, a Democratic senator who sponsored the bill, said after it won final approval. Beasley is a retired pharmacist. Dozens of independent pharmacies, many in rural areas, have shuttered in Alabama over the last two years, according to the Alabama Independent Pharmacy Alliance. Pharmacists said that is because it can often cost more to dispense a drug than they are reimbursed by pharmacy benefit managers. Pharmacy benefit managers leverage purchasing power with drug companies with the goal of driving down drug costs for consumers. However, independent pharmacists say the business practices of benefit managers cause them to lose money on about 20% of prescriptions. Alabama is one of several states considering new regulations on pharmacy benefit managers, the middlemen between health insurance companies, drug companies and pharmacies. Legislation seeking regulations on the benefit managers was also been proposed in Mississippi, Arkansas and other states.
Yahoo
21-03-2025
- Business
- Yahoo
Alabama lawmakers advance regulations on pharmacy benefit managers
MONTGOMERY, Ala. (AP) — Two blocks from the Alabama Statehouse, a black wreath hung on the door of Adams Drugs — a symbol to draw attention to the number of neighborhood pharmacies that have closed, or are in danger of closing, across the state. Dozens of independent pharmacies have shuttered in Alabama over the last two years, according to the Alabama Independent Pharmacy Alliance. Pharmacists said that is because of financial pressures, in part, because it can often cost more to dispense a drug than they are reimbursed by pharmacy benefit managers. 'We're losing almost one drugstore per week going out of business because they are paid such a small amount of money from the PBM industry to fill prescriptions for their patients at their drugstore,' Sen. Billy Beasley, a Democratic senator and retired pharmacist, said. Alabama is one of several states considering new regulations on pharmacy benefit managers, the middlemen between health insurance companies, drug companies and pharmacies. The Alabama Senate voted 32-0 Thursday to advance legislation to require minimum reimbursement rates to community pharmacists. The bill now moves to the Alabama House of Representatives. Legislation seeking regulations on the benefit managers have also been proposed in Mississippi, Arkansas and other states. Both large retail chains and independent pharmacists have closed stores across the country as drugstores face reimbursement issues, rising costs and other challenges. Pharmacy benefit managers leverage purchasing power with drug companies with the goal of driving down drug costs for consumers. However, independent pharmacists say the business practices of benefit managers cause them to lose money on about 20% of prescriptions. 'The biggest issue is we're not getting paid what it actually cost to fill a prescription, including labor,' Trent McLemore, a pharmacist with Star Discount Pharmacy. The Alabama bill would require that PBMs reimburse community pharmacies at the Alabama Medicaid Agency reimbursement rate. It would also prohibit the practice of 'spread pricing' where a benefits manager charges health plans more for drugs than they pay pharmacies. Groups opposed to the bill have said it would effectively put a new $10.64 fee on prescriptions under the requirement to match state Medicaid rates, which include a $10.64 dispensing fee. That fee, they argued, will eventually get passed down to consumers and businesses. Helena Duncan, president of the Business Council of Alabama, told a legislative committee on Wednesday that small businesses, which might already be struggling to provide insurance to their workers, will have to either absorb the increased cost or pass it along to employees through premium increases. 'Shifting the financial burdens from pharmacies to the Alabama employers is fundamentally unfair,' Duncan told a legislative committee on Wednesday. Republican Sen. Andrew Jones, a cosponsor of the bill, said Thursday said other states have seen drug prices go down. Jones said it is important to protect neighborhood pharmacies because they play a vital role in communities. 'You are not going to get a big box store to open in the middle of the night to get you the medication you need,' Jones said.
The Independent
20-03-2025
- Business
- The Independent
Alabama lawmakers advance regulations on pharmacy benefit managers
Two blocks from the Alabama Statehouse, a black wreath hung on the door of Adams Drugs — a symbol to draw attention the number of neighborhood pharmacies that have closed, or are in danger of closing, across the state. Dozens of independent pharmacies have shuttered in Alabama over the last two years, according to the Alabama Independent Pharmacy Alliance. Pharmacists said that is, in part, because it can often cost more to dispense a drug than they are reimbursed by pharmacy benefit managers. 'We're losing almost one drugstore per week going out of business because they are paid such a small amount of money from the PBM industry to fill prescriptions for their patients at their drugstore,' Sen. Billy Beasley, a Democratic senator and retired pharmacist, said. Alabama is one of several states considering new regulations on pharmacy benefit managers, the middlemen between health insurance companies, drug companies and pharmacies. The Alabama Senate voted 32-0 Thursday to advance legislation to require minimum reimbursement rates to community pharmacists. The bill now moves to the Alabama House of Representatives. Legislation seeking regulations on the benefit managers have also been proposed in Mississippi, Arkansas and other states. Pharmacy benefit managers leverage purchasing power with drug companies with the goal of driving down drug costs for consumers. However, independent pharmacists say the business practices of benefit managers cause them to lose money on about 20% of prescriptions. 'The biggest issue is we're not getting paid what it actually cost to fill a prescription, including labor,' Trent McLemore, a pharmacist with Star Discount Pharmacy. The Alabama bill would require that PBMs reimburse community pharmacies at the Alabama Medicaid Agency reimbursement rate. It would also prohibit the practice of 'spread pricing' where a benefits manager charges health plans more for drugs than they pay pharmacies. Groups opposed to the bill have said it would effectively put a new $10.64 fee on prescriptions under the requirement to match state Medicaid rates, which include a $10.64 dispensing fee. That fee, they argued, will eventually get passed down to consumers and businesses. Helena Duncan, president of the Business Council of Alabama, told a legislative committee on Wednesday that small businesses, which might already be struggling to provide insurance to their workers, will have to either absorb the increased cost or pass it along to employees through premium increases. 'Shifting the financial burdens from pharmacies to the Alabama employers is fundamentally unfair,' Duncan told a legislative committee on Wednesday. Republican Sen. Andrew Jones, a cosponsor of the bill, said Thursday said other states have seen drug prices go down. Jones said it is important to protect neighborhood pharmacies because they play a vital role in communities. 'You are not going to get a big box store to open in the middle of the night to get you the medication you need,' Jones said.
Associated Press
20-03-2025
- Business
- Associated Press
Alabama lawmakers advance regulations on pharmacy benefit managers
MONTGOMERY, Ala. (AP) — Two blocks from the Alabama Statehouse, a black wreath hung on the door of Adams Drugs — a symbol to draw attention the number of neighborhood pharmacies that have closed, or are in danger of closing, across the state. Dozens of independent pharmacies have shuttered in Alabama over the last two years, according to the Alabama Independent Pharmacy Alliance. Pharmacists said that is, in part, because it can often cost more to dispense a drug than they are reimbursed by pharmacy benefit managers. 'We're losing almost one drugstore per week going out of business because they are paid such a small amount of money from the PBM industry to fill prescriptions for their patients at their drugstore,' Sen. Billy Beasley, a Democratic senator and retired pharmacist, said. Alabama is one of several states considering new regulations on pharmacy benefit managers, the middlemen between health insurance companies, drug companies and pharmacies. The Alabama Senate voted 32-0 Thursday to advance legislation to require minimum reimbursement rates to community pharmacists. The bill now moves to the Alabama House of Representatives. Legislation seeking regulations on the benefit managers have also been proposed in Mississippi , Arkansas and other states. Pharmacy benefit managers leverage purchasing power with drug companies with the goal of driving down drug costs for consumers. However, independent pharmacists say the business practices of benefit managers cause them to lose money on about 20% of prescriptions. 'The biggest issue is we're not getting paid what it actually cost to fill a prescription, including labor,' Trent McLemore, a pharmacist with Star Discount Pharmacy. The Alabama bill would require that PBMs reimburse community pharmacies at the Alabama Medicaid Agency reimbursement rate. It would also prohibit the practice of 'spread pricing' where a benefits manager charges health plans more for drugs than they pay pharmacies. Groups opposed to the bill have said it would effectively put a new $10.64 fee on prescriptions under the requirement to match state Medicaid rates, which include a $10.64 dispensing fee. That fee, they argued, will eventually get passed down to consumers and businesses. Helena Duncan, president of the Business Council of Alabama, told a legislative committee on Wednesday that small businesses, which might already be struggling to provide insurance to their workers, will have to either absorb the increased cost or pass it along to employees through premium increases. 'Shifting the financial burdens from pharmacies to the Alabama employers is fundamentally unfair,' Duncan told a legislative committee on Wednesday. Republican Sen. Andrew Jones, a cosponsor of the bill, said Thursday said other states have seen drug prices go down. Jones said it is important to protect neighborhood pharmacies because they play a vital role in communities. 'You are not going to get a big box store to open in the middle of the night to get you the medication you need,' Jones said.
