Buffalo, N.Y. (WBEN) - Local pharmacies are bracing for impact as Rite Aid prepares to close over 70 locations in WNY.
Stephen Giroux with Wurlitzer Family Pharmacy says it's a tragedy to see Rite Aid leave New York, however, this outlines a deeply rooted problem in the pharmaceutical industry — Pharmacy Benefit Managers (PBM).
"The big three are CVS Caremark, OptumRx and Express Scripts. They try to steal business to mail order. They reimburse pharmacies well below our cost in many instances, and manipulate formularies and just squeeze both patients. They cheat really. They really are fraudulent in their practices with their clients, which are health plans, government agencies. Many states have settled lawsuits with these entities for multi-millions of dollars because of fraudulent practices. They're monopolies," stated Giroux.
Giroux says up until recently, the Federal Trade Commission would look the other way.
"Now, the Federal Federal Trade Commission has begun investigating them. They tried to ignore the Federal Trade Commission. They sue the Federal Trade Commission. I mean, there's just all kinds of evil associated with these big three PBMs," explained Giroux.
Giroux says there's currently a PBM reform bill in Washington right now that he hopes will be included in the budget reconciliation.
"The PBM reform legislation in Washington is a $5 billion savings. If they implement the PBM reforms that were in those pieces of legislation, $5 billion of savings. That's a DOGE-like opportunity for the government, and it's strongly bipartisan supported, and for some reason we simply can't get it out."
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With Rite Aid leaving, Giroux is concerned about the ripple effects on the community.
"It's going to create an overwhelming burden for some local pharmacies to be able to pick up the slack, if we're at capacity now. Ironically, because of the practices of these middlemen, these PBMs pay us below our cost of ingredient on many of the expensive brands. Many pharmacies, including Rite Aid, are not even stocking the very expensive brands anymore. We talk about GLP ones, the diabetes weight loss medications. They're $1,000 prescriptions per month. Many pharmacies aren't stocking them anymore, and that is going to create a void in service levels, particularly when a company like Rite Aid goes out and isn't able to serve those needs. So we have to be careful about that a little bit. If you take an expensive brand, you better talk to the pharmacist about that."
Giroux says the best thing anyone can do right now is plan ahead and start looking at other pharmacies.
"We tell people that are calling us, and we're getting hundreds of calls a day the last two days, to talk to your doctor and have your doctor send all of your prescriptions to the next pharmacy that you're going to select. Hopefully it's an independently owned community pharmacy. If they send all the prescriptions now, that way, we'll be ready to fill your prescriptions when you need them. We'll just put them on file in the meantime and be ready for you when you need them, so that there's no gap in your therapy."