“The Tide of ‘Pharmageddon’: Pharmacies Facing Closure Amid Growing Protest

The threat of “Pharmageddon” is sweeping across the nation as protests have started to close a number of pharmacies. This is a direct result of proposed government policies that target the traditional business model used by many small, independent pharmacies. The changes, submitted by the Centers for Medicaid and Medicare Services (CMS), focus on pharmacy reimbursements for generic drugs and place new regulations for business practices, including a radical overhaul of the way that pharmacies are paid for certain products and services. The proposed regulations are highly controversial and could potentially have a devastating effect on the livelihoods of pharmacy owners. It is estimated that on average, independent pharmacies receive 30% less than chain pharmacy stores for the same generic drugs. What’s worse, the cut is significantly deeper for many of the traditional services purchased by consumers, such as extended immunizations and comprehensive drug monitoring programs. The reductions proposed would cause many independent pharmacies to be unprofitable, leaving tens of thousands of pharmacies across the nation without the revenue necessary to stay in business. The Alliance of Community Pharmacists, a non-profit group that represents independent pharmacies, estimates that if the proposed rule changes go into effect, up to 25,000 pharmacies could close. The CMS has clearly underestimated how significant the proposed changes could be and pharmacies are now facing what’s being called “Pharmageddon”. Patients worry that their pharmacies won’t be able to stay open and that they will be left with fewer options when it comes to getting the medications they need. The Alliance of Community Pharmacists has joined together with pharmacy advocacy organizations and local pharmacies to provide the government with feedback about the proposed regulations and to launch protests at affected locations (like the ones reported at the start of this article). It remains uncertain if the CMS will reconsider the proposed regulations, but if it doesn’t, the threat of Pharmageddon could become a realty for many small pharmacy owners and the patients that they serve. The threat of “Pharmageddon” is sweeping across the nation as protests have started to close a number of pharmacies. This is a direct result of proposed government policies that target the traditional business model used by many small, independent pharmacies. The changes, submitted by the Centers for Medicaid and Medicare Services (CMS), focus on pharmacy reimbursements for generic drugs and place new regulations for business practices, including a radical overhaul of the way that pharmacies are paid for certain products and services. The proposed regulations are highly controversial and could potentially have a devastating effect on the livelihoods of pharmacy owners. It is estimated that on average, independent pharmacies receive 30% less than chain pharmacy stores for the same generic drugs. What’s worse, the cut is significantly deeper for many of the traditional services purchased by consumers, such as extended immunizations and comprehensive drug monitoring programs. The reductions proposed would cause many independent pharmacies to be unprofitable, leaving tens of thousands of pharmacies across the nation without the revenue necessary to stay in business. The Alliance of Community Pharmacists, a non-profit group that represents independent pharmacies, estimates that if the proposed rule changes go into effect, up to 25,000 pharmacies could close. The CMS has clearly underestimated how significant the proposed changes could be and pharmacies are now facing what’s being called “Pharmageddon”. Patients worry that their pharmacies won’t be able to stay open and that they will be left with fewer options when it comes to getting the medications they need. The Alliance of Community Pharmacists has joined together with pharmacy advocacy organizations and local pharmacies to provide the government with feedback about the proposed regulations and to launch protests at affected locations (like the ones reported at the start of this article). It remains uncertain if the CMS will reconsider the proposed regulations, but if it doesn’t, the threat of Pharmageddon could become a realty for many small pharmacy owners and the patients that they serve.