US pharmacies claim govt report proves closure cause

The US Department of Health and Human Services' Office of the Inspector General has released figures which, a pharmacy group argues, demonstrate that "inadequate" reimbursements under the Medicare Part D prescription drug benefit for seniors (Marketletters passim) are responsible for outlet closures. According to a report by the Associated Press, pharmacists receive $2 less per prescription under the new program than they do for Medicaid dispensed drugs. However, the OIG study did not specifically take a view on whether the arrangements under the Medicare program were adequate.

Mike James, the government affairs director of the Association of Community Pharmacists, said that most local pharmacies would need to raise charges by up to 21% to remain economically viable, instead of the 18% currently levied. Of the more than 1,000 pharmacies to close down in 2007, Mr James claimed that many had cited the reimbursement discrepancy as a factor.