Local Pharmacist Sounds Alarm Over Financial Strain Amid Federal Drug Price Reforms!
As federal lawmakers work to lower prescription drug costs for some seniors, local pharmacy owner Zarina Jalal is highlighting the operational challenges her business faces.
Jalal, who supervises Lincoln Pharmacy—a community staple for 90 years—says the current payment structure is making it hard for pharmacies to stay afloat and is calling for increased regulations.
Jalal’s concerns are part of a larger trend affecting pharmacies nationwide. The University of Pittsburgh’s School of Pharmacy has mapped pharmacy closures across the U.S., revealing significant numbers of closures over the past six years. In Albany alone, eight pharmacies have shut down during this period.
Jalal explains that while Lincoln Pharmacy is financially stable and not at immediate risk of closing, she feels it’s crucial to speak out. She believes that patients should always have access to their local pharmacies, a right she feels is being threatened by current industry practices.
One of the major issues is the way Pharmacy Benefit Managers (PBMs) operate. PBMs are third-party companies that handle prescription drug benefits for pharmacies, drug manufacturers, and insurance providers. Jalal says that these PBMs are imposing fees and payment structures that result in under-reimbursement for pharmacies.
For instance, if a drug costs Lincoln Pharmacy $100, the PBMs might only reimburse them $60 or $70, leading to financial losses. “It’s a tough spot,” Jalal admits. “We end up having to choose which products to carry based on whether we can afford the loss.”
This financial strain has led Jalal to discontinue certain products, as carrying them was no longer financially viable. The problem is not limited to small, independent pharmacies like Lincoln; even large corporate chains are facing similar issues.
Jalal is worried about the impact on patients. With so many pharmacies closing, she feels it’s essential to ensure that people continue to have access to the medications they need, whether through Lincoln Pharmacy or other local pharmacies.
She recounted a recent negotiation with a PBM in which she tried to address the issue of unsustainable contract terms. Despite her efforts, the PBM ended up removing Lincoln Pharmacy from its network without a discussion about adjusting the rates.
Amidst these challenges, Senator Chuck Schumer recently visited Albany to promote legislation aimed at reducing out-of-pocket prescription costs for seniors. While Jalal supports the initiative to help patients, she also believes that pharmacies need support to continue serving their communities effectively.
She hopes lawmakers will consider the difficulties faced by pharmacies and advocate for more regulations on PBMs.
Jalal has expressed her concerns to Schumer’s office, which she found receptive to her issues. Her call to action is for legislators to address the financial difficulties faced by pharmacies so they can maintain their crucial role in community healthcare.