Rural and poor areas losing their local pharmacies
December 16, 2024
Summary: Minoritized and poor communities were more likely to lose access to a local pharmacy since 2018.
Source: Guadamuz, et al Health Affairs December, 2024
Researchers reported in this month’s issue of Health Affairs that the U.S. lost 2.1% of its pharmacies between 2018 and 2021. Almost one-third of the pharmacies (29%) that had been open at any time from 2010-2020 were no longer open in 2021. The pharmacies most likely to close were in Black or Hispanic neighborhoods and neighborhoods with higher levels of uninsured residents and poverty. Independent pharmacies closed at a higher rate than chain pharmacies.
Convenient pharmacies help maintain medication adherence, and pharmacists can be a valuable source of health information. Many Americans now depend on pharmacies to obtain vaccinations. Pharmacists can also help with management of chronic diseases, although few have time to do this, and most insurance plans do not cover pharmacist-led disease management. -led disease management.
Chain and independent pharmacies have had difficulty attracting and retaining adequate pharmacist and technician staff, and independent pharmacies complain about low reimbursement from pharmacy benefit managers. One in three employers (35%) require mail order for maintenance medications, lowering the volume for local pharmacies according to the 2024 WTW Best Practices in HealthCare Survey.
Implications for employers:
More health plan members are likely to no longer have access to nearby local pharmacies, making mail order maintenance medications even more important.
Some of the pending PBM reform bills include language that would bar PBMs from paying local pharmacies less than their acquisition cost.
Employers can review their retail pharmacy networks to ensure the network meets the needs of at-risk populations
Employers should continue to cover vaccinations in both the pharmacy and medical benefit so that members have access either in pharmacies or in provider offices.
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Tomorrow: Prices of brand name drugs decrease over time in some countries