Gov. Ivey signs bill regulating pharmacy benefit managers in order to help small pharmacies

PRODUCT. ANOTHER BILL MAKING THE ROUNDS IN MONTGOMERY TONIGHT COULD SEE MORE REIMBURSEMENTS FOR LOCAL PHARMACIES. SENATE BILL 252 PASSED THE STATE HOUSE AND NOW HEADS TO THE GOVERNOR’S DESK. WVTM JARVIS ROBERTSON SPOKE WITH A LOCAL PHARMACIST TODAY ABOUT THE BILL’S PROGRESS. JARVIS, HOW IS HE FEELING RIGHT NOW? WELL, GUY. SHERI, THE ISSUE WITH LOCAL PHARMACIES ARE HAVING A PHARMACY BENEFIT MANAGERS. NOW, THAT’S A MIDDLEMAN BETWEEN THE STORE AND INSURANCE COMPANIES AND THE PHARMACY. NOW, YOUR LOCAL PHARMACY MAY PAY A CERTAIN AMOUNT FOR MEDICATION, BUT THE PBM WON’T PAY BACK THAT PRICE. THIS LEGISLATION CHANGES THAT. I’D LIKE TO THANK THE ALABAMA LEGISLATURE FOR UNANIMOUSLY PASSING THIS LEGISLATION. RALPH SORRELL IS THE OWNER OF RICH’S PHARMACY IN MOUNTAIN BROOK. IF YOU’VE BEEN TO HIS STORE, THEN CHANCES ARE YOU’VE SEEN THESE SIGNS OUTSIDE SHOWING SUPPORT FOR SB 252. THIS WEEK, STATE LAWMAKERS PASSED THE BILL THAT WOULD PUT MORE MONEY BACK INTO THE LOCALLY OWNED PHARMACIES. PRIOR TO THIS LEGISLATION PASSING JUST THIS YEAR, ALABAMA HAS LOST 50 PHARMACIES BEFORE PRESCRIPTIONS FILLED AT RICH’S OR OTHER PHARMACIES. IT’S FIRST SUBMITTED TO THE INSURANCE COMPANY, WHICH IS EVENTUALLY SUBMITTED TO THE PHARMACY BENEFIT MANAGER. BUT THE PROBLEM IS COST REIMBURSEMENT. SORRELL SAYS HIS STORE HANDLES PLENTY OF HIGH COST PRESCRIPTIONS. IF THE MEDICINE COSTS $600, PBMS WILL ONLY PAY BACK BETWEEN 500 AND $560. THIS LEGISLATION REQUIRES THAT A PBM REIMBURSE THE PHARMACY WHAT THE MEDICATION COST, WHAT WE PAY FOR IT, PLUS A SMALL COST TO DISPENSE FEE, AND THE DISPENSE FEE WOULD BE $10 AND $0.64. IT’S NOT ENOUGH TO GENERATE PROFITS AT THE END OF THE YEAR, BUT IT’S ENOUGH TO KEEP US IN BUSINESS, KEEP US AFLOAT. SORRELL SAYS HIS PHARMACY HAS BEEN LOSING MONEY. YOU SAID A LOSS FOR THE LAST TWO MONTHS. TWO MONTHS? HOW MUCH WAS THAT LOSS? OR IS THAT. IT WAS $40,000. EACH MONTH OR JUST TWO MONTHS COMBINED EACH MONTH. HE KNOWS OF OTHER PHARMACIES THAT HAVE CUT BACK STAFF HOURS TO CONTINUE OPERATING. LOSING THE STORE HE LOVES SO MUCH WOULD BE DEVASTATING. I SPOKE TO ONE PHARMACIST WHO HAD CUT HIS STAFF BACK TO 30 HOURS A WEEK, CASHED IN HIS RETIREMENT ACCOUNT, DONE EVERYTHING HE COULD TO STAY, STAY OPEN. SO AGAIN, THIS BILL DID PASS BOTH CHAMBERS.

Video above: Previous coverageAlabama Governor Kay Ivey on Tuesday signed a bill putting new regulations on pharmacy benefit managers in an effort to curb the closure of small pharmacies across the state.“The Alabama Legislature unanimously voted for Senate Bill 252 to help support independent pharmacists across our state, and I was pleased to sign it into law," said Ivey. "I commend Sen. Billy Beasley and Rep. Phillip Rigsby for their dedication to this issue. I believe this new law will help many struggling pharmacies stay in business and continue to provide vital health care to Alabamians.” 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.“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."Prior to this legislation passing, just this year, Alabama has lost 50 pharmacies," said Ralph Sorrell, owner of Ritch's Pharmacy.If you visit Ritch's Pharmacy in Mountain Brook, you'll see signs out front in support of SB252. He says this legislation has been needed for years. Sorrell told us there are some pharmacies that have limited staff hours to save money.Sorrell says it is devastating to have a local pharmacy close, especially in rural areas. Sometimes that's the only access to healthcare someone people may have in their direct community.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.>> WVTM 13 ON-THE-GO: Download our app for freeAlabama 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.

Video above: Previous coverage

Alabama Governor Kay Ivey on Tuesday signed a bill putting new regulations on pharmacy benefit managers in an effort to curb the closure of small pharmacies across the state.

“The Alabama Legislature unanimously voted for Senate Bill 252 to help support independent pharmacists across our state, and I was pleased to sign it into law," said Ivey. "I commend Sen. Billy Beasley and Rep. Phillip Rigsby for their dedication to this issue. I believe this new law will help many struggling pharmacies stay in business and continue to provide vital health care to Alabamians.”

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.

“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.

"Prior to this legislation passing, just this year, Alabama has lost 50 pharmacies," said Ralph Sorrell, owner of Ritch's Pharmacy.

If you visit Ritch's Pharmacy in Mountain Brook, you'll see signs out front in support of SB252. He says this legislation has been needed for years. Sorrell told us there are some pharmacies that have limited staff hours to save money.

Sorrell says it is devastating to have a local pharmacy close, especially in rural areas. Sometimes that's the only access to healthcare someone people may have in their direct community.

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.

>> WVTM 13 ON-THE-GO: Download our app for free

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.

Gov. Ivey signs bill regulating pharmacy benefit managers in order to help small pharmacies

Share

Share

Share

Top Picks