The Impact of Pharmacy Benefit Managers on Independent Pharmacies

You may have heard about food deserts, but what about pharmacy deserts? Although there are significant differences between the two concepts, both can have a substantial impact on public health. A lack of access to nutritious food can harm one’s health, and the same principle applies to the availability of medications.

Unfortunately, the issue of pharmacy deserts appears to be worsening in the United States.

This concern is highlighted in a recent investigation by Reed Abelson and Rebecca Robbins for The New York Times. They uncovered numerous instances where pharmacy benefit managers (PBMs) have fostered an environment that is detrimental to many independently-owned pharmacies. The reporters documented several cases in which local pharmacies attributed their closures to the actions of PBMs, contributing to the emergence of what Abelson and Robbins referred to as “pharmacy deserts,” which hinder residents’ access to prescriptions and medical guidance.

Moreover, many PBMs also run their own pharmacies, with CVS Caremark being a notable example. Although industry representatives claimed to the Times that their goal is to reduce costs for consumers and clients, the investigation revealed instances where PBMs reimbursed their corporate affiliates at higher rates for specific drugs than they did for independent pharmacies.

The influence of PBMs has become a significant political topic. Last year, Senator Bernie Sanders introduced the Pharmacy Benefit Manager Reform Act, which garnered bipartisan support. Earlier this year, Lina M. Khan, the Chair of the Federal Trade Commission (FTC), released a statement addressing the agency’s findings regarding these entities.

“Pharmacists from West Virginia to Texas have contacted the FTC, voicing concerns that the business practices of PBMs endanger their patients while undermining independent pharmacies that have long served their communities,” Khan stated. Matt Stoller, an expert on monopolies, was even more direct, asserting that “just three PBMs now control the pricing of pharmaceuticals, redirecting vast sums of money to themselves.” It appears that a change is necessary, leaving us to ponder what that change will entail.

At Mediserv Pharmacy, located in the Bronx, New York, we understand the vital role independent pharmacies play in ensuring community health. As a locally owned pharmacy, we are dedicated to providing personalized care and accessible medications to our neighbors. In an increasingly challenging landscape influenced by pharmacy benefit managers, we remain committed to serving our community with integrity and compassion.