The challenges faced by independent pharmacies in negotiating drug prices under the Medicare Part D program have been highlighted in a recent national survey.

Undermining Efforts to Lower Prescription Drug Costs

Over 90% of independent pharmacies may choose not to stock drugs targeted for price negotiations, which could undermine the administration's efforts to lower prescription drug costs.

The survey reveals that concerns over potential underwater reimbursements from pharmacy benefit managers (PBMs) are a major factor in this decision.

Financial Strain on Independent Pharmacies

The National Community Pharmacists Association (NCPA) estimates that participating pharmacies will need to allocate around $27,000 of their own funds each month to stock the negotiated drugs, further exacerbating cash flow issues.

As a result, 93% of independent pharmacists are considering withdrawing from the program, which accounts for about 35% of their business.

Threat to Patient Access

The low reimbursement rates not only threaten the viability of independent pharmacies but also limit patient access to essential medications.

The survey also highlights a significant disconnect between independent pharmacists and PBMs, with the majority reporting unsuccessful attempts to negotiate fairer reimbursements.

Impact on Medicare Savings

The Inflation Reduction Act, signed into law in 2022, aimed to empower Medicare to negotiate prices for certain high-expenditure drugs, but the challenges faced by independent pharmacies could undermine the anticipated savings for Medicare beneficiaries.

Uncertain Future for Independent Pharmacies

The future of independent pharmacies and their ability to serve Medicare patients effectively is uncertain, and a reevaluation of the reimbursement structure is needed to ensure their viability and the provision of necessary services to communities.