Medicaid managed care squeezing some Illinois independent pharmacies
"We are trying to stretch every dollar," said
State Sen.
But some legislators and others are concerned the legislation would increase costs to the state without benefiting people on Medicaid.
The challenge for pharmacists is that Medicaid managed care organizations reimburse pharmacies for medications at lower rates than traditional Medicaid. While that affects all pharmacies with Medicaid managed care customers, independent pharmacies are more keenly impacted.
But
Previously, when he would fill a prescription for someone on Medicaid, he would make
Taveggia said during one week in early April, he filled 210 prescriptions for people on Medicaid managed care, lost money on 35 of those prescriptions and made less than a dollar on 110 of them.
For one couple, Taveggia fills 18 prescriptions each month. "Since the switch to Medicaid managed care, I lose
Taveggia said he's able to stay in business because his customers include a couple of long-term care facilities. But he's concerned long term whether his pharmacy and other independent pharmacies can stay open.
"Community pharmacies support communities," he said. "We provide jobs. We support our towns."
Young said that, prior to
"We offer free delivery," she said. "That will have to change."
The current legislative session ends Thursday.
Part of the problem, independent pharmacists said, is that pharmacy benefit managers (PBMs), who are contracted by health plans, employers and governments to manage prescription drug programs, determine which pharmacies to include in drug plan networks, how much pharmacies are paid for their services and which drugs are covered.
While PBMs say they reduce drug prices, pharmacists question whether they are making money on the backs of patients and pharmacists.
"They are setting the pricing and where that pricing comes from is unknown to me," said
Declining reimbursement means pharmacists may reconsider filling some prescriptions, Martin said.
"To stay in business, you have to make wise choices," he said. "What saved me is I got into the medical equipment side of the business."
House Bill 3479 would require Illinois Medicaid managed care organizations to provide fair and reasonable reimbursement to pharmacists and would require more transparency from PBMs.
Independent pharmacists support the legislation. "Anything they do to make these PBMs more open is advantageous," Martin said.
What if the legislation doesn't pass?
"Well, I've been in business for 50 years," Martin said. "You look at the big picture and you'll survive."
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