18 Iowa Pharmacies Have Closed in 2024 – PBM Reform is Needed NOW

• By: IPA
• On: 09/26/2024 14:50:21
• In: Press Releases
• Comments: 0

Pharmacy benefit managers, or PBMs, are powerful, anti-competitive middlemen in the pharmacy supply chain, originally created to negotiate costs between pharmacies and health plans. Over the years, PBMs have been allowed to operate largely unregulated, with three PBMs now controlling 80% of the prescription drug market.¹

PBMs yield influence over pharmacies and patients alike and drive up the cost of medications. PBM contracts often limit patient choice, requiring patients to use PBM-owned pharmacies. PBMs also use opaque reimbursement models, often reimbursing pharmacies less than the cost of a drug and the services provided to dispense it. These harmful PBM business practices are outlined in the Federal Trade Commission's recent report and subsequent lawsuit.^2,3

As a result of PBM contracts and business practices, pharmacies in Iowa and across the country are forced to close. In 2024 alone, 18 Iowa pharmacies have closed in both rural and urban communities, and 2,275 pharmacies have closed across the US.⁴ In the last ten years, 143 Iowa pharmacies have closed, creating pharmacy deserts and forcing patients to travel farther for essential care and services. This is particularly detrimental to patients facing transportation and work-related barriers.

Iowa pharmacists are trusted and accessible healthcare providers. To keep pharmacists in local communities, PBM reform must occur now at the state and federal level. In 2025, this will be the primary focus of the Iowa Pharmacy Association's advocacy agenda.
 

1. https://www.drugchannels.net/2022/04/the-top-pharmacy-benefit-managers-of.html?m=1
2. https://www.ftc.gov/reports/pharmacy-benefit-managers-report
3. https://www.ftc.gov/news-events/news/press-releases/2024/09/ftc-sues-prescription-drug-middlemen-artificially-inflating-insulin-drug-prices
4. https://benjaminjolley.substack.com