Latest news with #TrentMcLemore
Yahoo
10-04-2025
- Business
- Yahoo
‘A lifeline': Alabama legislators pass bill locally-owned pharmacies say will keep them in business
HUNTSVILLE, Ala. (WHNT) — Locally owned Alabama pharmacies have been closing their doors at a rapid rate, but a bill that passed the state legislature Tuesday will change how they are reimbursed, aiming to keep more independent pharmacies open. Huntsville-based Star Discount Pharmacy Director Trent McLemore said he would not have expected to see this day six months ago, and he believes this bill will create a more fair system. Congressman Mike Rogers says Space Command relocation announcement could come in April 'It is literally a lifeline for independent pharmacies, for small businesses, which is what really matters,' McLemore said. He said local pharmacies have been getting paid less than their larger, corporate counterparts. SB 252, called the Community Pharmacy Relief Act, will put new regulations on Pharmacy Benefit Managers (PBMs). PBMs are the middlemen who work between pharmacies and insurance companies. They decide how much money a pharmacy will be reimbursed for filling a prescription. The legislation directs PBMs to take 100% of the rebate money they get from drug makers in connection with Alabama contracts and pay the money to Alabama health insurance providers. The money will be used to make sure independent pharmacists are paid a $10.64 dispensing fee. The measure still needs Gov. Kay Ivey's signature to become said that while pharmacies will be paid more, patients will not see cost increases. 'Your co-pays will not go up when this starts,' McLemore said. 'Your premiums won't go up, and ultimately, you'll have more options as soon as the governor signs this.' Patients should now pay the same co-pay at any in-network pharmacy. 'No longer will it be, 'Well, I'm sorry. We can only fill here twice, and you have to get a mail order, or I can only fill for 30 days versus 90 days, or the co-pay is way higher at an independent,'' McLemore said. 'Those will all be on an equal playing field.' McLemore said that when the cost of getting a prescription filled is not a determining factor anymore, he believes competition will be driven by customer service. 'It makes it about patient care instead of about dollars again,' McLemore said. Letters addressed to Alabama House members contained pornographic images: ALEA He said the passage of the bill is a win for David against Goliath. 'Being able to know that we won't get paid below our cost is a lifesaving grace for a lot of independent pharmacies,' McLemore said. More than 100 Alabama pharmacies have closed in the past four years, state figures show. The Alabama Legislature has also called for a multi-year study looking into how PBMs are operating in the state and identify any practices that are decreasing positive competition between pharmacies. McLemore said he hopes the study will inspire more legislation down the line, like expanding access to specialty pharmacy drugs. 'Specialty pharmacy accounts for about half of PBM profits right now,' McLemore said. 'Those are your very expensive items. These are the drugs you see on TV commercials, and they cost tens of thousands of dollars.' Specialty pharmacy drugs are excluded from the current legislation. Pharmacies will begin receiving reimbursements on October 1. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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.
