State Senator James Skoufis said on May 8 that local pharmacies are critical health care access points for seniors, people with chronic conditions, and underserved communities. He said the Patient Access to Pharmacy Act would help keep pharmacies open by ensuring reimbursement at or above medication acquisition costs.
“Pharmacy benefit managers were originally intended to help manage prescription drug benefits and negotiate lower costs for consumers. Instead, they have grown into powerful middlemen, dictating reimbursement rates to pharmacies with little transparency or accountability,” Skoufis said in remarks published by Times Union. “In many instances, pharmacies are reimbursed less than what they paid to acquire the medication in the first place. When pharmacies close, patients lose convenient access to medications that manage chronic illnesses, treat infections and prevent serious complications.”
“The Patient Access to Pharmacy Act is a common-sense solution that ensures pharmacies are reimbursed at or above the cost of acquiring prescription medications. New Yorkers deserve a health care system that works,” he added.
The issue has gained attention as independent and community pharmacies face increasing financial pressure.
Nearly one in three U.S. retail pharmacies operating between 2010 and 2021 had closed by 2021, with closures accelerating after 2018. Independent pharmacies were disproportionately affected, particularly in Black, Latino, and low-income communities, according to the USC Schaeffer Center for Health Policy & Economics.
The pharmacy benefit manager (PBM) market is highly concentrated and vertically integrated, with major PBMs linked to large insurers and pharmacy chains. The Federal Trade Commission has noted that this structure gives PBMs significant influence over reimbursement rates, drug placement, and patient access within the prescription drug system.
A 2024 survey by the National Community Pharmacists Association found that 32% of independent pharmacies were considering closure due to reimbursement pressures and cash-flow challenges, while 93% said they would consider leaving Medicare Part D if conditions persisted.
James Skoufis is a Democratic member of the New York State Senate representing the 42nd District in the Hudson Valley. He serves on Senate committees and sponsors legislation focused on state policy issues affecting his district and New York residents more broadly.
