Earlier this month, independent pharmacies gained attention for their support of a bipartisan bill aimed at regulating pharmacy benefit managers (PBMs), the intermediaries managing contracts between pharmacies and drug manufacturers. State Representatives Jessica Benham and Abby Major, alongside Dave Cippel, head pharmacist of Klingensmith Drugstores, advocated for this legislation during a press conference at the Klingensmith location in Ford City on May 10.
Klingensmith Drugstores, which employs 98 people and delivers to approximately 100 homes daily, is known for its strong community ties. These ties are threatened when independent pharmacies like Klingensmith are forced to close due to unsustainable business conditions.
Cippel highlighted the closure of twelve community pharmacies in western Pennsylvania within the last month alone, attributing these closures to unfair reimbursement practices by PBMs. The proposed House Bill 1993 seeks to address these issues by allowing pharmacists to register complaints against PBMs and mandating greater transparency concerning PBM rebates and payments.
The bill also aims to curb several PBM practices that distort the market, such as patient steering and retroactive financial recoupments, which are particularly harmful to small pharmacies. Over 90% of U.S. prescriptions are controlled by three major PBMs, which benefit from vertical integration, impacting prices and accessibility at every level from clinics to prescriptions.
The legislation has broad support and is expected to pass in June, with advocates emphasizing the urgent need for reform to preserve community health and pharmacy access.
