On April 15, Alabama Governor Kay Ivey signed Senate Bill 252, the Community Pharmacy Relief Act, into law. As previously reported by The Plainsman, the bill was a compromise between competing bills and was decided on and introduced in February. Before its introduction, the need for legislation curtailing the power of pharmacy benefit managers—or PBMs—was the subject of a protracted debate.
This debate created particularly fervent support from community pharmacies across the state. On Feb. 25, many pharmacists participated in a walkout organized by the Alabama Pharmacy Association to express support for PBM legislation.
The eventual unanimous passage of SB 252 represented a significant win for these local pharmacists.
"SB 252 has been signed into law and marks a great victory for independent community pharmacies in Alabama," Jeff Jerkins, pharmacist at Bubba's Pharmacy in Opelika, said. "This law will help independent pharmacies to be treated more fairly by PBMs. This will permit local pharmacies to do what they do best: provide great health care for their communities. It is a victory for all Alabama patients who rely on independent pharmacies and have the choice now to shop local."
The bill's advocates were thrilled to see the introduction of a so-called "fair pay clause." This clause stipulates that pharmacies be reimbursed at a uniform dispensing fee of $10.64. This number is the current Medicaid dispensing fee, but it will now be extended to commercial insurance companies.
The dispensing fee attracted the most significant opposition from groups allied with PBMs, who asserted that it would increase health insurance premiums for consumers. The fair pay clause will not go into effect until the beginning of the new fiscal year on Oct. 1, 2025.
"We didn't think we could find representatives willing to expend the political capital to make a fair pay clause, but lo and behold, here it is," Josh Hardin, a Alabama Independent Pharmacist Association representative, said.
The primary concern for pharmacists is now the bill's enforcement. SB 252 designates enforcement power to the Alabama Department of Insurance and its commissioner, Mark Fowler.
"The bill is a good start, but this is where the real work begins to keep the DOI [Department of Insurance] accountable on enforcement," Hardin said. "As long as this bill is properly enforced, we'll get a lifeline out to independent pharmacies across the state."
Though there are still other obstacles for local, independently-owned pharmacies, Jerkins feels the bill helps make the pharmacy competition fairer.
"This bill doesn't correct all the problems that community pharmacies face, but it is a great first step to help level the playing field," concluded Jerkins.
Do you like this story? The Plainsman doesn't accept money from tuition or student fees, and we don't charge a subscription fee. But you can donate to support The Plainsman.
