MONTGOMERY, Ala. (AP) — On Tuesday, Alabama lawmakers made a significant stride towards supporting independent pharmacies by voting to implement new regulations on pharmacy benefit managers (PBMs). This legislative change is aimed at addressing the growing concern over the closure of small pharmacies across the state, particularly those serving rural communities.

The Alabama House of Representatives passed the proposal with a unanimous vote of 102-0, highlighting a rare instance of bipartisan support within the state legislature. The approved bill mandates that pharmacy benefit managers are required to reimburse independent pharmacists at least at the state Medicaid rate for prescription medications. Following this decision, the bill is now set to be presented to Alabama Governor Kay Ivey for her approval.

Senator Billy Beasley, a Democratic senator and retired pharmacist who sponsored the bill, expressed his satisfaction with the outcome. “This has been a win for the people of Alabama. It’s been a huge win for the community pharmacists in the state who just want to be able to go to work, make a living, and take care of their patients,” Beasley stated, underscoring the importance of local pharmacies in providing healthcare services.

Over the past two years, Alabama has witnessed the closure of dozens of independent pharmacies, particularly in rural areas, according to the Alabama Independent Pharmacy Alliance. Pharmacists have reported that the financial challenges stem from the fact that the cost of dispensing medications often exceeds the reimbursements they receive from pharmacy benefit managers. This troubling trend has raised alarms about the sustainability of local pharmacies, which play a critical role in community health.

Pharmacy benefit managers act as intermediaries between health insurance companies, drug manufacturers, and pharmacies, utilizing their purchasing power to negotiate lower drug prices for consumers. However, independent pharmacists argue that the practices of these middlemen have led to significant financial losses, with reports indicating that they lose money on approximately 20% of prescriptions filled.

Alabama is not alone in its efforts to regulate pharmacy benefit managers; several other states, including Mississippi and Arkansas, are also considering similar legislative measures aimed at curbing the influence of these intermediaries. As the landscape of healthcare continues to evolve, the role of pharmacy benefit managers remains a contentious issue, with stakeholders divided over their impact on prescription drug pricing and accessibility.