Legislation Aimed at Saving Pharmacies Signed by Pennsylvania Governor Josh Shapiro

By Meghan Schiller

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PITTSBURGH, Pa. (KDKA) — Governor Shapiro signed legislation Wednesday aimed at saving local pharmacies from bankruptcy. More than 140 pharmacies have closed in Pennsylvania since Jan. 1, proponents of the bill say.

A KDKA study in March mapped out a profile of struggling pharmacists for the first time. It concerns the role of pharmacy benefits managers, who act as intermediaries between insurance companies and pharmacies.

The state legislation signed Wednesday aims to create more transparency in that process, a victory in pharmacies’ fight to stop losing money on every prescription filled.

Pennsylvania State Rep. Jessica Benham led that fight. One day, while she was standing in line at Spartan Pharmacy, the owner pulled her aside and brought the concerns to her attention.

Countless pharmacists and legislators pushed House Bill 1993 across the finish line. For communities that rely on these pharmacies, it means they now have a chance to stay open.

“I was very hopeful. I think you have to have confidence in the process and it was really a great process from that perspective, both sides of the aisle coming together to get the bill passed,” said Rick Siepp, the vice president of pharmacy strategy for Value Drug Company.

The battle against ‘spread pricing’

Benham said she also wanted a ban on something called “spread pricing,” but she didn’t get it.

“Spread pricing is when a pharmacy benefits manager overcharges the insurance company and underpays your local pharmacy,” Benham explains.

Instead, a study will now be conducted to gather more data on the impact of this practice on consumers.

“I can understand why the Senate wants to see additional data, but I hope that once we have that data, we can make further progress,” she continued.

Small businesses are hurting

It’s a problem that hits everyone’s pocketbook. Pennsylvania Sen. Devlin Robinson said these pharmacy benefit managers are hurting small businesses.

“We know that pharmacies are an anchor for many neighborhoods and we want to ensure they compete in a fair marketplace,” Robinson said.

Pharmacist Adam Rice told KDKA he wants transparency. This legislation will give the Pennsylvania Insurance Department more oversight of pharmacy benefit managers.

“The state auditor general can’t open their books and audit them. How can that be? Everybody’s audited. Insurance companies are audited. Pharmacies are audited, but the guy who’s playing with the money in the middle can’t be audited,” Rice said.

Pennsylvania Cancer Drug Storage Program Update

In another update to a KDKA investigation, a grieving father spoke to KDKA. He wanted to donate his deceased daughter’s unused and unopened cancer medications, but couldn’t find anyone who would accept them.

KDKA Investigates revealed that the state’s cancer drug program existed in name only, with only two pharmacies in the state signing up to receive unused cancer drugs from medical facilities.

Following that report, the state promoted the program and 20 pharmacies across the state have now signed up.

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