New York Faces Growing Pharmacy Access Challenges Amid Closures

News Summary

New York is experiencing significant challenges in accessing prescription medications as major pharmacy chains close numerous locations. With Rite Aid, CVS, and Walgreens shutting down, many patients are struggling to obtain necessary medications. Rite Aid’s plans to close or sell 178 drugstores further exacerbate the crisis, particularly in regions like Western New York. Independent pharmacies are also suffering due to low reimbursement rates, creating ‘pharmacy deserts’ and raising concerns about public health. Legislative efforts to improve pharmacy viability face setbacks, leaving patients in jeopardy of inadequate access to healthcare services.

New York Faces Growing Pharmacy Access Challenges Amid Closures

New York is currently grappling with significant access challenges to prescription medications as major pharmacy chains, including Rite Aid, CVS, and Walgreens, shut down numerous locations across the state. The closures have left many patients struggling to obtain their necessary medications, significantly impacting those with limited resources.

Rite Aid, in particular, has faced severe financial difficulties, having filed for bankruptcy twice. Recently, the company announced plans to close or sell 178 drugstores in New York, further exacerbating the situation. Nearly 70 of these closures are expected to occur in Western New York alone, prompting Erie County officials to issue an emergency alert to assist affected patients.

The decline of retail pharmacies is not an isolated incident. Independent pharmacies, already struggling under low reimbursement rates from pharmacy benefit managers (PBMs), are increasingly unable to absorb the surge of patients displaced by the closures. These independent establishments report losing hundreds of dollars per patient due to inadequate reimbursement for medications, with certain drugs reimbursed below their acquisition costs.

Low Reimbursements and Impact on Pharmacies

The persistent low reimbursement rates have reached a crisis point, making it unsustainable for many pharmacists to continue delivering prescriptions. The PBMs, which consist primarily of a few large corporations, have faced criticism for inflating drug prices and profiting at the expense of smaller pharmacies. Rather than passing the savings from drug rebates directly to health plans, these managers often retain a portion of the savings, increasing costs for both pharmacies and patients.

As a result of these economic pressures, many independent pharmacists have reported minimal or negative reimbursement for prescriptions, leading to unsustainable pain points within the healthcare industry. Reports indicate that some pharmacists are losing money on nearly all medications they dispense, making survival difficult for a growing number of establishments.

The Emergence of Pharmacy Deserts

The significant closures have also led to the creation of “pharmacy deserts” in various areas of New York, leaving many residents without local access to essential healthcare services. This situation poses severe challenges for individuals who require regular medications, as well as the broader population that relies on pharmacies for services such as vaccinations and health advice.

Public health officials have raised alarms over the impact that ongoing pharmacy closures could have on public health systems. Experts warn that as pharmacies disappear, it becomes increasingly difficult for patients to receive necessary healthcare services, particularly in communities that already lack sufficient resources.

Legislative Response and Advocacy Efforts

In response to these growing concerns, pharmacists and pharmacy groups have been advocating for the Patient Access to Pharmacy Act. This proposed legislation aims to ensure fair reimbursement rates for pharmacies to enhance their viability and maintain accessibility for patients. Unfortunately, the New York State Assembly ended its last session without passing this crucial bill, raising further worries about the future of pharmacy access, especially in upstate New York.

The trends seen in New York reflect a broader national crisis in the pharmacy industry. Rite Aid has also announced plans to close an additional 118 stores across 11 states, highlighting the extensive challenges facing pharmacies nationwide. Experts point to shifting consumer behaviors, heightened competition from e-commerce, and various economic pressures as contributing factors to the struggles within the retail pharmacy sector.

Conclusion

The state of New York is now at a critical juncture as pharmacy closures continue to threaten patient access to medications. The combination of ongoing economic pressure, low reimbursement rates, and an increasing number of pharmacy deserts poses serious implications for public health. Without legislative support and meaningful changes from PBMs, many residents may face a future where obtaining vital prescriptions becomes increasingly difficult.

Deeper Dive: News & Info About This Topic

• Record Online: Rite Aid Closures Creating Pharmacy Deserts in NY
• UticaOD: New York Pharmacies Drug Costs Insurance
• Fast Company: Rite Aid Stores Closing Update
• WGRZ: Rite Aid to Start Closing Stores
• Wikipedia: Pharmacy