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Independent pharmacists tell committee PBMs squeeze reimbursements and contribute to pharmacy closures
Summary
The Massachusetts Independent Pharmacists Association warned that pharmacy benefit managers’ reimbursement practices are driving closures and creating pharmacy deserts, and urged further legislative reforms following registration requirements enacted last year.
Dennis Lyons, a registered pharmacist and executive director of the Massachusetts Independent Pharmacists Association, told the Joint Committee on Financial Services that independent pharmacies in the state are under pressure from pharmacy benefit managers (PBMs) and unfair reimbursement practices.
Why it matters: Lyons said independent pharmacies provide locally tailored services—delivery, compliance packaging, counseling and care for group homes and elderly residents—but are closing at significant rates nationwide and in Massachusetts because reimbursement from PBMs is inadequate.
Lyons noted that last year the legislature required PBM registration with the Division of Insurance, a reform the association supported, but said more action is needed. He cited a University of California study reporting that one third of pharmacies that opened in 2010 had closed by 2023 and said closures contribute to pharmacy deserts that reduce access to medication in vulnerable neighborhoods.
Lyons asked the committee to continue evaluating PBM-related bills this session to protect patient access to medications and preserve community pharmacies.
Provenance: Lyons’ testimony began at transcript block 3495.52 and continued through remarks concluding at 3775.31.
