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Legislators, Board discuss pharmacy "deserts" and payer practices as closures mount
Summary
Committee members pressed the Board of Pharmacy on pharmacy closures in underserved areas and asked what tools the board is considering to preserve access, including fee waivers; board said statutory change may be required and pointed to payer practices as a root cause.
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Assemblymembers pressed the Board of Pharmacy about growing "pharmacy deserts" and asked what authority the board has to stem closures that reduce patient access in parts of the state.
"What actions are you thinking about undertaking to help with addressing those things?" asked one legislator, citing the background paper's issue on pharmacy deserts.
Board officials said they are considering authority to waive pharmacy application and renewal fees for pharmacies that locate or remain in underserved "desert" areas, but that the board believes such authority requires statutory change. "We believe that that requires statutory change," a board representative told the committee, adding that the board hopes to partner with the Legislature to establish waiver authority under specified conditions.
Board witnesses also pointed repeatedly to payer practices as a principal driver of closures. The board said it is reviewing reimbursement and clawback practices that can make the business model unsustainable for many community pharmacies and that addressing those practices will be necessary to tackle closures at their root.
Ending: Committee members asked to follow up on district-specific closures and signaled they will continue to pursue options including possible fee-waiver authority and investigation into payer contracting practices that may be contributing to pharmacy closures.
