Independent pharmacies describe new law as a lifeline for their business
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Independent pharmacies describe new law as a lifeline for their business
State senators killed a bill that CVS says would’ve resulted in the company pulling out of Louisiana. Lawmakers did pass House Bill 264, which calls for several changes to how pharmacy benefit managers, or PBMs, operate in the state. Many local pharmacists see PBMs as their biggest threat. CVS Health issued the following statement addressing the Louisiana Legislature’s efforts on more regulations on PBMs: “Our focus remains on serving people, lowering drug costs, and helping improve productively with policymakers,” said Amy Thibault, executive director of corporate communications and external affairs for CVS health.“What they (PBMs) are basically doing to us is killing the competition,’ said Ella Vasquez, owner of DBS Pharmacy on Airline Highway in Metairie. “Everybody is just hanging in there to stay afloat,“ said Michael George, a pharmacist at Majoria Drugs on Majoria Road.
On June 11, many CVS customers woke up to a text from the pharmacy chain that said it would have to close its locations in Louisiana because of HB 358; which passed both the House and Senate. (WAFB)
“I see this as a lifeline to the independent pharmacies, because it can’t continue the way it is,” said Al Spitale, a pharmacist in Metairie.
Pharmacy benefit managers are companies that health insurers use to handle prescription drug benefits. PBMs are often described as middlemen: they negotiate prices with drug manufacturers and pharmacies, and they decide which medications are covered under a health plan. Many local pharmacists see PBMs as their biggest threat.
“It’s David against Goliath basically right now,” Spitale said.
Spitale is a pharmacist at Majoria Drugs on Metairie Road. He says when it comes to reimbursements from PBMs, independent pharmacies are consistently shortchanged.
“We can fill prescriptions and lose anywhere between $6, $8, $10, sometimes $20 dollars on a prescription, and we just have to refuse to fill it,” said Spitale.
The new law imposes more regulations on PBMs, including a requirement that they reform their reimbursement practices and pass more savings on to customers. It also prohibits “patient steering,” a practice in which PBMs funnel customers to specific pharmacies. CVS Caremark, the PBM arm of CVS Health, has been accused of directing patients to CVS-owned pharmacies in Louisiana.
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Spitale says that despite the new law, PBMs can still influence where people fill their prescriptions by manipulating co-pays.
“If you get it filled with an independent store, you may pay $10/month for a co-pay. Whereas you go to CVS, they give it to you for zero. So, it’s a no-brainer and I don’t blame the customer for that,” said Spitale.
Many independent pharmacies say PBMs have been trying to drive them out of business for years. While pharmacists view the new reforms as a good first step, many still worry about the future.
“Everybody is just hanging in there to stay afloat,” said Ella Vasquez.
Vasquez owns DBS Pharmacy on Airline Highway in Metairie. She says that despite one PBM-related bill getting killed, the latest legislative session was a win for independent pharmacies.
“What they (PBMs) are basically doing to us is killing the competition. What this bill does is level the playing field,” said Vasquez.
Ultimately, customers decide where to fill their prescriptions. We met Michael George as he waited in line at Majoria Drugs. He says he prefers a local pharmacy because of the access to professional staff.
“Look back there, they have a lot of pharmacists, a lot of people helping out. A lot of times at Walgreens, you have two or three people back there, and they’re so busy that I won’t get to talk a pharmacist,” said George.
To ensure that level of access and attention remains, independent pharmacies say more PBM reforms will be necessary.
On Friday, CVS Health issued the following statement addressing the Louisiana Legislature’s efforts to place more regulations on PBMs:
“Our focus remains on serving the people of Louisiana: lowering drug costs, providing access to care, and helping improve health. We look forward to working productively with policymakers to continue to make prescription drugs more affordable and accessible and to promote the value of community pharmacy,” said Amy Thibault, executive director of corporate communications and external affairs for CVS Health.
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Source: https://www.fox8live.com/2025/06/14/independent-pharmacies-describe-new-law-lifeline-their-business/