Latest news with #BillyBeasley
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 Senate passes bill regulating pharmacy benefit managers
Sen. Billy Beasley, D-Clayton, (right) speaks with Sen. Keith Kelley, R-Anniston on the floor of the Alabama Senate on March 19, 2025 at the Alabama Statehouse in Montgomery, Alabama. (Brian Lyman/Alabama Reflector) The Alabama Senate Thursday passed a bill creating new regulations on reimbursements and fees pharmacy benefit managers (PBMs) charge to pharmacies. SB 252, sponsored by Sen. Bill Beasley, D-Clayton and called the 'Community Pharmacy Relief Act,' seeks to address concerns from independent pharmacies over reimbursement rates and business practices that critics say have driven many out of business. '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,' Beasley, a retired pharmacist, said on the Senate floor. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX PBMs act as a 'middle-man' between health insurers, pharmacies and drug manufacturers. They negotiate drug prices, determine reimbursement rates for pharmacies and manage prescription drug benefits. Critics accuse PBMs have used their position to impose unfair fees and steer patients toward PBM-owned pharmacies. PBMs are also accused of keeping manufacturer rebates for themselves instead of passing the savings along to consumers. The bill, which passed in a 32-0 vote with one abstention, would impose new restrictions on PBMs, including a prohibition on reimbursing independent pharmacies at rates lower than those paid by the Alabama Medicaid Agency. It would also ban PBMs from charging certain fees to pharmacies, require them to pass on 100% of manufacturer rebates to health plans and prevent them from blocking pharmacists from disclosing lower-cost alternatives to patients. The bill faced intense but cordial debate on the Senate floor, with supporters of the bill saying PBMs are currently straining independent pharmacies. Beasley, pointing to pharmacy closures, criticized the PBM industry for what he described as unfair reimbursement practices. 'The PBM industry owns the mail-order pharmacies. They control the contract that the drug solos agree to,' Beasley said, adding that 'over the last 40 years, and they always say, 'if you let me be your manager, we'll save you money on your expenditures on prescription drugs.' Well, Senators, it hasn't happened.' Sen. Chris Elliott, R-Daphne, introduced an amendment that would have delayed the reimbursement provisions until January 2026 to allow businesses time to adjust. 'We have friends in the business community, both on the pharmacy side and on the employer and employee side. And what this does is simply move again the effective date … so it gives them time to work through their contracts and enter into new contracts,' Elliot said. The amendment failed after Sen. Andrew Jones, R-Centre, opposed the delay, saying that pharmacies needed relief immediately. After further discussion, lawmakers settled on an October 1 effective date as a compromise. After the vote, senators from both parties said the bill was a significant step in addressing rising prescription drug costs and protecting local pharmacies. ' This is something that has been worked on for years to try to rectify this situation, and we've just finally gotten to the point it has been bipartisan. These two gentlemen have practiced pharmacy in the state for a long time. They understand the process,' Sen. Larry Stutts, R-Tuscumbia, said after the Senate adjourned. Jones made a point to say that the bill's provisions would not increase consumer costs. 'The actual acquisition cost of drug plus the reimbursement, which is based on Medicaid, that cannot be passed on to the consumer,' Jones said. 'And anything to the contrary is just a scare tactic.' The bill now moves to the House of Representatives for consideration. SUPPORT: YOU MAKE OUR WORK POSSIBLE
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.
