Medicaid Pharmacy Cuts Could Force More Than 11,000 Pharmacies to Close, Affecting 300,000 Jobs and $31.1 Billion in Output

A report, appear accordingly today by the National Association of Chain Drug Stores (NACDS) and the Food Marketing Institute (FMI), analyzes the abeyant appulse of the DRA on pharmacies (Impact of the Deficit Reduction Act of 2005 on Pharmacies by State), encompassing alternation biologic stores, absolute pharmacies and accumulation merchants and supermarkets with pharmacies. These cuts abuse to abate acceptance to medications and pharmacy services, and they aswell abuse the animation of communities Pharmacies are the face of adjacency healthcare, but these cuts could clean these faces away, decidedly in rural and burghal areas with college Medicaid populations. In abounding rural and burghal communities, supermarkets accommodate the alone pharmacies able to serve Medicaid patients By abbreviation Medicaid reimbursements as this law requires, abounding pharmacies would be affected to close, and low-income Americans would accept to biking abounding afar to access basic medicines.

Alexandria, Va. (Vocus/PRWEB ) May 20, 2008 -- An bread-and-butter impact study of the Deficit Reduction Act (DRA) of 2005 finds that 11,105 pharmacies above the country could abutting due to reductions in the Medicaid agreement rate, able-bodied below their amount to ample prescriptions. These pharmacies accomplish added than 300,000 jobs and $31.1 billion throughout the nation's economy.

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The report, appear accordingly today by the National Association of Chain Drug Stores (NACDS) and the Food Marketing Institute (FMI), analyzes the abeyant appulse of the DRA on pharmacies (Impact of the Deficit Reduction Act of 2005 on Pharmacies by State), encompassing alternation biologic stores, absolute pharmacies and accumulation merchants and supermarkets with pharmacies.

To the admeasurement that pharmacy closures artlessly alter patients to added pharmacies, the net impacts would be smaller. However, this offers little achievement to pharmacies in rural areas and burghal neighborhoods with ample Medicaid populations back these areas would be absurd to sustain their businesses and advance pharmacy access. The accident of pharmacies for these Medicaid participants would abnormally affect their health, according to NACDS and FMI.

The Medicaid affairs pays retail pharmacies a dispensing fee additional a agreement rate
designed to awning the amount of accepting the biologic from the architect for Medicaid
prescriptions. The changes in the Medicaid agreement ante beneath the DRA could badly lower pharmacy agreement ante and aftereffect in bags of pharmacies closing, authoritative pharmacies beneath accessible to patients.

The abstraction is based on estimates provided in able affidavit by Steven Schondelmeyer, a assistant at the University of Minnesota, that 20 percent of pharmacies could abutting due to the DRA.

The abstraction finds that the appulse of the abatement in agreement ante on the amount of pharmacies will alter by state. However, the better allotment reductions in pharmacies are projected in New York (40 percent), the District of Columbia (37 percent), Louisiana (32 percent), West Virginia (30 percent) and Alaska (28 percent).

“These cuts abuse to abate acceptance to medications and pharmacy services, and they aswell abuse the animation of communities,” said NACDS President and CEO Steven C. Anderson, IOM, CAE. “Pharmacies are the face of adjacency healthcare, but these cuts could clean these faces away, decidedly in rural and burghal areas with college Medicaid populations.”

“In abounding rural and burghal communities, supermarkets accommodate the alone pharmacies able to serve Medicaid patients,” said Tim Hammonds, admiral and CEO at FMI. “By abbreviation Medicaid reimbursements as this law requires, abounding pharmacies would be affected to close, and low-income Americans would accept to biking abounding afar to access basic medicines.”

The abstraction was conducted for the National Association of Chain Drug Stores and the Food Marketing Institute by PricewaterhouseCoopers LLP, the assurance, tax and advising firm.

The National Association of Chain Drug Stores represents the nation’s arch retail alternation pharmacies and suppliers, allowance them bigger accommodated the alteration needs of their patients and customers. Chain pharmacies accomplish added than 39,000 pharmacies, apply 114,000 pharmacists, ample added than 2.4 billion prescriptions yearly, and accept anniversary sales of over $700 billion. Other associates cover 1,010 suppliers of articles and casework to the alternation biologic industry. NACDS all-embracing associates includes 101 associates from 29 countries. For added advice about NACDS, appointment www.NACDS.org.

Food Marketing Institute (FMI) conducts programs in research, education, industry relations and accessible address on account of its 1,500 affiliate companies — aliment retailers and wholesalers — in the United States and about the world. FMI’s U.S. associates accomplish about 26,000 retail aliment food with a accumulated anniversary sales aggregate of $680 billion — three-quarters of all retail aliment abundance sales in the United States. FMI’s retail associates is composed of ample multi-store chains, bounded firms and absolute supermarkets. Its all-embracing associates includes 200 companies from added than 50 countries.