US GAO/CMS threat for pharmacists

An analysis dated December 22, 2006, yet only released publicly on January 23 by the US Government Accountability Office, reveals that a new formula for reimbursing pharmacies that serve Medicaid recipients will result in pharmacists losing, on average, 36% on every Medicaid prescription they fill.

"The Centers for Medicare and Medicaid Services (CMS) is effectively putting community pharmacies out of the Medicaid business," said National Community Pharmacists Association chief executive Bruce Roberts. "It will be the nation's poor - in particular women and children who make up the majority of Medicaid recipients - who will suffer when they no longer have access to community pharmacies for the medicines they need," he added.

Continued reimbursement cuts in both Medicaid and the Medicare Part D program are threatening the existence of many independent community pharmacies. In many rural areas, the local independent is the only pharmacy serving the community, and this new reimbursement is a threat to its viability, presenting a real health crisis for local citizens. "In Indiana, for example," said Mr Roberts, "more than 6% of community pharmacies went out of business due to continually declining reimbursement. With this new Medicaid reimbursement cut, many more will suffer the same fate."