Independent pharmacies are the heart of a community. They provide personalized care and customer service that chain pharmacies cannot match. They are neighbors taking care of neighbors. Independent pharmacies are typically family-owned and operated, with many being multi-generational. They add a personal touch to the services they provide.
Unfortunately, they face a bleak future due to the negative impact of PBM reimbursement and regulation. As someone with a personal connection to this industry, it breaks my heart to see independent pharmacies' struggles and challenges. In this blog post, we will discuss the reality of the independent pharmacy industry and why we need to support them.
The Fight for Fairness: Protect Independent Pharmacies and Regulate PBMs
The reality is harsh for independent pharmacies. In the past decade, they have been closing at an alarming rate due to the negative impact of PBM reimbursement: PBMs, or Pharmacy Benefit Managers, are third-party companies that help manage and regulate prescription drug plans for insurance companies and large businesses. Unfortunately, they have been known to reimburse independent pharmacies at a lower amount or charge unfair fees while up-charging insurance companies and businesses and giving preferential treatment to chain pharmacies and mail-order pharmacies, many of which they own, all to pad their already large pockets. This disadvantages independent pharmacies, forcing them to close their doors. According to a recent report, more than 1,200 independent pharmacies have closed since 2009.
The negative effects of PBM preferential reimbursement go beyond just the financial impact on these businesses. It also limits the services they can provide, such as not allowing 90 days supply or charging higher co-pays for patients to utilize an independent pharmacy, steering patients to utilize one of the PBM-owned pharmacies. Independent pharmacies pride themselves on personalized care and customer service, which often means going above and beyond what is required. However, due to the regulations and limitations set by PBMs, patients are left with limited options and, in some cases, subpar care.
The closure of independent pharmacies affects the business owners and the community. Independent pharmacies are often the only source of healthcare for some small towns and rural areas. Without these pharmacies, patients are forced to travel long distances to get their medications or wait days for mail orders to arrive to begin a prescribed medication. This can lead to patients going without their medication or may lead to hospitalization or re-hospitalization. This affects low-income communities and neighborhoods disproportionately.
Despite the bleak reality, there is still hope for the independent pharmacy industry. As a community, we need to support them more than ever. Using an independent pharmacy for our prescription needs and supporting state and federal regulation of PBMs can help save independent pharmacies. Additionally, supporting local businesses helps boost the economy and creates jobs within our communities.
In Conclusion: This Doesn't Have to Spell "The End" for Your Local Independent Pharmacy, but Your Action is Required
The independent pharmacy industry is facing a heartbreaking reality. Due to damaging PBM reimbursement policies, they are closing their doors at an alarming rate. This affects the business owners, patients, and communities they serve. However, we still have a chance to make a difference; by shopping at independent pharmacies and supporting state and federal regulations of PBMs, we can keep the heart of the pharmacy industry beating strong.
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