July RxNews: Walgreens closing 2,100 stores & The Fall of PBMs?
Alex Barker, PharmD
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Are pharmacy benefit managers (PBMs) losing their power?
What could the FTC's latest move mean for drug pricing and patient care??
Is this the shake-up we've been waiting for, or just another bump in the road?
Welcome to July’s RxNews for the latest insights into what happened in pharmacy.
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FTC Targets PBMs: A New Dawn for Fair Drug Pricing?
FTC Criticizes PBMs for Inflating Drug Costs
In a significant policy shift, the Federal Trade Commission (FTC) released a new report criticizes pharmacy benefit managers (PBMs) for inflating drug costs and squeezing independent pharmacies.
The report uncovered practices where PBMs favored specific products, blocking competition and potentially leading to formal investigations or lawsuits. (All things we pharmacists have known for decades)
I think all pharmacists hope these actions will address on-going unfair practices and improve prices and healthcare quality.
FTC to Sue Major PBMs Over Pricing Practices
Following the FTC's critical report, the agency announced plans to sue the three largest PBMs—OptumRx, Express Scripts, and CVS Caremark—on July 10, 2024.?
The lawsuit alleges improper pricing negotiations with drug manufacturers, leading to higher prices for consumers.?
This move underscores the FTC's commitment to addressing the unfair practices highlighted in their report, with the potential to impact patients, pharmacies, and drug pricing significantly.?
Bipartisan Agreement on Blame for High Drug Prices
In a rare show of unity, Democrats and Republicans blamed PBMs for high prescription drug costs during a recent oversight committee hearing.?
Lawmakers grilled executives from the same major PBMs named in the FTC's report.
Let’s hope for continuity and unity, given that this is an election year.
Recent evidence shows PBMs list hundreds of different prices for the same drug, causing confusion and higher prices.
The FTC's report highlights these discrepancies and calls for increased regulation.?
Novartis and PhRMA Denied Injunction in 340B Pricing Case
In related legal news, a Mississippi federal judge denied Novartis Pharmaceuticals and PhRMA's request for an injunction against state enforcement of 340B pricing protections for contract pharmacies.?
The 340B program, which helps hospitals and clinics buy discounted drugs, has seen enrollment surge, leading to disputes between entities needing affordable medications and industry drugmakers protecting their profits.?
This case highlights the broader legal and regulatory battles over drug pricing and access, echoing the challenges faced by PBMs. ????
North Carolina House Bill 246 in Limbo, Impacting Local Pharmacies
Closer to home, North Carolina House Bill 246 , passed by the House but currently stalled in the Senate, aims to protect patients' freedom to choose their pharmacies and ensure fair reimbursement practices.?
This bill directly challenges the influence of PBMs, which can mandate where patients receive their medications.
Local pharmacists emphasize the personal touch of community pharmacies, which they say is threatened by PBMs' dominance.?
The bill's progress is crucial for independent pharmacies hoping to survive amidst the growing scrutiny and legal battles faced by PBMs. ????
If you’re in NC, message your local Senator!?
What’s Your Take? ??
What can you say about these issues? Comment or reply to let us know your thoughts!
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领英推荐
Confronting Closures, Layoffs, and Breakthrough Innovations
?? Walgreens Closing 2,150 Stores ????
Walgreens aims to close 25% of its 8,600 U.S. stores (about 2,150 locations) by 2027, targeting unprofitable, nearby, and high-theft locations.?
This move addresses the shift towards online services and lower in-person prescription pickups.?
CEO Tim Wentworth noted the current model is unsustainable due to lower reimbursement rates and increased price sensitivity among consumers.?
Despite closures, Walgreens aims to relocate affected employees to minimize job losses. We will see how that shakes out.
This optimization is expected to “enhance overall customer experience.”
?? Pharmacy Deserts in Chicago ??
Pharmacy closures , like those of Walgreens, CVS, and Walmart, are deepening health inequities in Chicago's South and West sides, predominantly affecting Black and Latino communities.?
From 2009 to 2021, 838 pharmacies closed in Illinois, disproportionately hitting low-income neighborhoods.?
Independent pharmacies struggle to stay open due to inadequate reimbursements, which worsens the situation. Violent crime in these areas also worsens the situation, deterring pharmacists and technicians alike from working in these conditions.
?? Biotech Industry Trends: Funding vs. Layoffs ??
The industry is experiencing a paradox in 2024, with booming startups raising nearly $3 billion in Q1 while major firms face significant layoffs.?
Let’s dive into the details!
Key Points and Results:
Examples include:
?? Market Conditions
Despite the challenges, the biotech sector’s restructuring aims to streamline operations and focus on key projects, highlighting the need for strategic realignment amidst financial and competitive pressures.
?? Amazon's RxPass for Medicare Beneficiaries?
Amazon Prime's RxPass now offers affordable access to medications for over 50 million Medicare beneficiaries, with free monthly delivery and 24/7 pharmacist access.?
Beneficiaries could save around $70 per year for one medication.?
This initiative aims to improve medication adherence and health outcomes, especially benefiting seniors and those in pharmacy deserts.
We Want to Hear from You!??
We'd love to hear your thoughts on the topics covered. Reply to let us know! ??
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Heroic Pharmacy Manager Saves the Day!
Bravery Under Fire During Robbery??♂???
Scott Wilson, manager of Brookville Pharmacy in Chevy Chase , Maryland, faced a terrifying ordeal during a Saturday afternoon robbery.?
Prioritizing the safety of a teenage customer, Wilson was pistol-whipped by the robbers who demanded oxycontin and money.
The robbers smashed both cash registers and fled in a white BMW sedan, leaving Wilson battered but thankful the teen escaped unharmed.?
The incident, captured on security footage, lasted about four minutes.
Despite the violence, Wilson’s quick thinking ensured the teenager's safety, showcasing his dedication and bravery in a crisis.
What’s your take on these incidents? ?? Reply to let us know! ______________________________________________________________
As we conclude this edition, let's remain vigilant and engaged with the evolving challenges in our industry. Our commitment to exceptional patient care and unwavering support for our profession is more crucial than ever. Until next time, let’s continue driving change, sharing our expertise, and forging a path toward a brighter, healthier future.
Stay brilliant and unstoppable, pharmacy champions! ????
Owner Pharmacist at Kimsey Pharmacy
1 个月Young pharmacist, pay attention! Get involved in NCPA now, and start saving your money. Once these stores begin to close, the future may very well be in independent ownership. We always hoped our profession would come full circle, and it is headed that way. Head it off by making a difference in PBM reform, so you can start out making money instead of losing money.
Prescriptions for Financial Health - Financial Advisor with a PharmD.
3 个月Although I love what I am doing now, it's sad to think that the PBMs are the main reason that I am no longer practicing pharmacy. As for Walgreens, the theft problem is out of control. I went to a store last week to introduce myself to the pharmacist. As I was leaving, I watched a person walk out of the store with a large clear plastic bin full of cosmetics and other items. The alarm sounded and she just kept walking.
Founder/CEO NorthShore Genomics. I help people discover healthier living by matching their diet, lifestyle, and medication to their genes!
3 个月Yep. Looks like PBM’s are about to kill the Golden Goose!
Health Coach @ Metabolism IQ | Nutritional Counseling, Wellness Coaching
3 个月Start building residual income today! Do something you’re passionate about. The skies the limit??
Asthma & Allergic Disorders in Older Adults Committee at American Academy of Allergy, Asthma and Immunology - AAAAI
3 个月The ONLY people that benefit from PBM’s are the employees of PBM’s. They have their hands and everyone’s pocket. Being from the days prior to PBM’s and at the beginning of the negative impact on healthcare brought on by the HMO Act of 1973, pharmaceuticals were priced like any other commodity: food, clothing, etc., for the end consumer to afford. It is like the healthcare version of “The Wizard of Oz”, just substituting the prescription copay cards to replace the curtain that the “Wizard” hid behind. You all know the rest of the story.