The Alabama House Insurance Committee amended and approved Wednesday a bill requiring pharmacy benefit managers to pay independent pharmacies more for some medications.
Senate Bill 252 by Sen. Billy Beasley, D-Clayton, says PBMs can’t reimburse independent pharmacies less than the amount paid by the Alabama Medicaid Agency. That currently includes a $10.64 per-prescription dispensing fee.
During a public hearing in the House Insurance Committee, several pharmacists told lawmakers they are the “most accessible health care professionals” in their communities, but being underpaid on some prescriptions by PBMs — third-party groups that negotiate drug prices — is driving them out of business.
While they’re not underpaid on every prescription they sell, pharmacists this year and last have testified before lawmakers about losing hundreds of dollars, sometimes thousands, on a single prescription. At least five locally owned pharmacies have closed this year.
“We wouldn’t be here if we weren’t trying to save independent pharmacies,” Beasley, a retired pharmacist, told his House colleagues.
Opponents of the bill have included the Business Council of Alabama and other groups concerned that the bill will result in higher costs for businesses and consumers.
“Our members have concerns about this legislation and it boils down to basic economics,” Jon Barganier, president and CEO of Manufacture Alabama, said. “When you’re talking about increasing a cost on a business … most businesses don’t absorb that cost. They pass it down to their customers. And in this case, with the new dispensing fee being proposed … it’s our concern that (PBMs) will ultimately pass this increased cost down to their customers, which happen to be employers who provide employer-sponsored health care benefits.”
He also asked that the committee remove the private rights of action provision in the Senate-passed bill. It said that anyone injured by a violation of the proposed law may bring a civil action against the PBM or its affiliate.
That language was removed through an amendment by Rep. Chris Blackshear, R-Phenix City.
Blackshear’s amendment also removed a two-year sunset on the price requirement.
Beasley’s bill passed the Senate last month. If it passes out of the House as amended, it will go back to the Senate for agreement on the change.