Dothan, ALA – In a growing battle to keep their doors open, independent pharmacies across Alabama, including Dalton Pharmacy in Slocomb, are protesting the practices of Pharmacy Benefit Managers (PBMs), calling for reforms to ensure their survival. On a recent afternoon, workers at Dalton Pharmacy turned off their lights for one hour to raise awareness about what they describe as an unfair business practice that has put small pharmacies at a disadvantage.
PBMs, which act as intermediaries between insurance providers and pharmacies, have been increasingly reducing the reimbursements that pharmacies receive for the medications they dispense. For many independent pharmacies, these reduced reimbursements are lower than the cost of purchasing the medication from wholesalers, making it financially unsustainable to continue operating.
“We’re just trying to show that if we don’t stop and get some reform in place, most of these independent pharmacies who serve the community will start disappearing,” said King, a worker at Dalton Pharmacy. “It’s a David and Goliath situation. We’re fighting against big pockets.”
King shared that the issue has worsened over the years, with 13% of pharmacies in Alabama closing since 2018. Last year, the pressure intensified, with pharmacies going out of business at a rate of one per month.
The impact of these closures is particularly concerning for elderly residents who rely on local pharmacies. “If we were to go out of business, our elderly customers might have to drive 15 or 20 minutes to the nearest pharmacy. That might not seem like a huge deal, but it could be for them,” said King. “They would have to go to a chain pharmacy and wait for hours, but here, we know them by name. We go over and beyond for them.”
In response to the growing crisis, a bill in the Alabama Senate is currently being proposed to reform the way PBMs operate. The legislation aims to require PBMs to reimburse pharmacies fairly, prohibiting them from paying less than the actual cost of medications. Supporters of the bill argue that this change would help preserve local pharmacies and ensure that customers continue to receive personalized care.
King emphasized that the bill is not a tax and will not result in higher copayments for consumers. In fact, similar legislation in Tennessee and West Virginia has proven to be beneficial, saving money by taking control away from PBMs and putting it back in the hands of local pharmacies and consumers.
“We love to serve our local community, and we can’t imagine having to close our doors,” King said. “If you have any concerns with the bill, we encourage you to contact us or your local representatives.”
As independent pharmacies continue to face financial challenges, many are hopeful that the proposed legislation will provide the relief needed to keep these essential businesses open and serving their communities.
