BUFFALO, N.Y. (WKBW) — Why are so many pharmacies closing? According to the owner of a local pharmacy, there are numerous reasons.
CVS has closed hundreds of stores in the last decade and plans to shut down hundreds more. Rite Aid filed for bankruptcy late last year and within the past 24 months has shuttered at least 13 stores in our region. Now Walgreens announced it will close numerous stores across the country.
"The relationship with prescription benefit managers is becoming unmanageable," says Don Arthur, owner of Brighton Eggert Pharmacy. Arthur told 7 News Journalist Lia Lando there are multiple reasons pharmacies are closing but the biggest reason: low reimbursement rates. "The reimbursement that Walgreen and Rite Aid and independent community pharmacies are getting from those prescription benefit managers just aren't covering their cost," explains Arthur.
Arthur says the problem boils down to Prescription Benefit Managers or PBM's, "Unfortunately, these middlemen are hiding behind the insurance plans and they're keeping most of those rebates." He also says shoplifting is a concern and has a sign on his door that reads, "Only one student in the store at a time. All backpacks must be left at front register," and he goes on to explain, "There are other issues with inflation and with the opioid crisis."
Arthur says PBMs have been around since the 70s when they processed hundreds of thousands of prescription claims for a small fee.
"The drug companies are part of the problem but also could be part of the solution by eliminating these rebates and getting the cost under control," Arthur says. "I'm going to have to make a very difficult decision and I'm probably not going to be able to participate in Blue Cross Highmark prescription plans effective September. I have over a thousand patients that have been with me some 20, 30, 40 years that have no idea this is coming."
Arthur says he's concerned about customers who rely on their local pharmacy. He says he and others have been going to Albany and Washington trying to get a legislative fix but says they are up against pharmaceutical giants.
