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.
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