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Committee backs bill to raise community pharmacy reimbursement for state plans
Summary
House Bill 174, which would change reimbursement rules so community pharmacies receive higher, more transparent payment rates from state health plans and pharmacy benefit managers, was reported out of committee unanimously (8-0).
House Bill 174, the Community Pharmacy Reimbursement bill, advanced from the committee by unanimous voice with a do‑pass recommendation.
Representative Gail Armstrong, the sponsor, said the bill would update reimbursement for community pharmacies — particularly independent rural pharmacies — to a transparent and fair rate, similar to a Medicaid change enacted last year. "Community based pharmacies, especially in rural New Mexico, provide individual quality frontline health care services to the communities they serve," Armstrong said.
Pharmacists and pharmacy trade associations testified in support. Dr. Ashley Seifarth, a pharmacist-owner from Aztec and Bloomfield, told members that prior legislation to reform Medicaid reimbursement had been implemented and was working, and urged extending parity to the remainder of state payers and pharmacy benefit managers. "We are asking that it is rolled to the entire system, for the state. It is that simple," Seifarth said.
Industry and association representatives — including the New Mexico Pharmacists Association and the New Mexico Pharmacy Business Council — highlighted the risk that inadequate dispensing fees pose to independent pharmacies' viability and to access in rural communities. Testimony described dispensing fees as currently insufficient in some state programs and noted the fee must cover operations, counseling and clinical services provided by local pharmacists.
Representative Armstrong moved the committee recommendation and Representative N. Chavez seconded. The committee recorded an 8-0 do‑pass vote.
What’s next: With unanimous committee support, the sponsor said the bill will proceed with broad coalition backing; committee members asked for implementation details and enforcement language to ensure PBMs comply with the new reimbursement formula.
