Pharmacist Chancey condemns PBMs for harming independent pharmacy services in South Georgia

Pharmacists and small business owners are calling for urgent reforms to the practices of Pharmacy Benefit Managers (PBMs) following a recent government hearing that highlighted the detrimental impact these entities have on community pharmacies and patient care. During the U.S. House Committee on Energy and Commerce meeting on February 27, 2025, a pharmacist from Chancey Drugs shared firsthand experiences illustrating how PBMs control access to medications, dictate pricing, and ultimately jeopardize the viability of local pharmacies.

The pharmacist, who has been part of the family-owned Chancey Drugs since its inception in 1966, emphasized that the top three PBMs dominate over 80% of the market. This vertical integration allows them to steer patients toward their own affiliated pharmacies, often resulting in delayed or missed medication deliveries. Reports from the Federal Trade Commission reveal that PBMs have generated billions in revenue by directing patients to specialty drugs at their own pharmacies, raising concerns about anti-competitive practices.

The hearing underscored the financial strain PBMs place on community pharmacies through tactics such as spread pricing and low reimbursement rates. For instance, states like West Virginia and North Dakota have saved millions by eliminating spread pricing and adopting transparent reimbursement models. Kentucky identified a staggering $123 million in annual spread pricing, prompting significant changes to its Medicaid pharmacy model.

The pharmacist urged Congress to pass Medicaid managed care pharmacy payment reform, which could save taxpayers an estimated $2 billion by ensuring pharmacies receive a fair percentage of the ingredient cost and dispensing fees. He also highlighted the restrictive nature of contracts with PBMs, which often leave pharmacists with little room to negotiate better terms, particularly in Medicare Part D.

As the discussion continues, the call for legislative action to regulate PBM practices and protect community pharmacies is gaining momentum. The implications of these reforms could lead to improved access to medications, lower costs for patients, and a more competitive healthcare landscape. The urgency of these changes is clear, as the future of local pharmacies and the health of communities hang in the balance.