NB Pharmacy Owner Joins Gov. Shapiro For Act 77 Signing

Gov. Josh Shapiro was joined by State Sen. Judy Ward, Bill Thompson, owner of Thompson's Pharmacy, Representative Jessica Benham, Joe Breton, owner of Northern Bedford Pharmacy, and Insurance Commissioner Michael Humphreys at Thompson Pharmacy in Hollidaysburg for a ceremonial signing of Act 77.

"This will bring critical relief to pharmacies across Pennsylvania," State Sen. Judy Ward said.

She said in many areas of the state including rural communities, pharmacies are a vital part of the healthcare network.

"Their pharmacies are on the front line of healthcare, and often the first stop of people looking for care," Ward said.

Independent pharmacies are struggling as more are continuing to close due to unfair practices of pharmacy benefit managers (PBMs), she said.

Ward said that Act 77 addresses these issues while ensuring transparency and accountability from the PBMs to make the playing field with independent pharmacies fair.

"In a time when community pharmacies cannot wait any longer, the General Assembly answered the call and has meaningful PBM reform that will bring needed relief across Pennsylvania," she said.

Thompson was the first person to talk to Ward about the PBM practices.

"I could not wrap my brain around it - you pay for the drugs but you don't get reimbursed for the full amount. How does anyone run a business like that?" Ward said.

As a result of bipartisan support from both parts of the legislature and Gov. Shapiro's administration, House Bill 1993 has been passed, Thompson said.

"Many thanks for listening to your community pharmacy," he said.

However, he said there is still work to do to ensure the long-term viability of independent pharmacies in the state.

"We cannot have any more community pharmacies close in PA, there is almost one a day closing now," Thompson said.

He said this legislation will help upset the tide of independent pharmacies closing, and give patients the right to choose their pharmacy.

Rep. Jessica Benham, D-Allegheny County heard the same story from pharmacists in rural areas, small-town suburbs, and big cities, the PBMs were rigging the system in favor of their affiliated big chain pharmacies while raising the cost of prescription medications for patients.

She said, as a result over 140 independent pharmacies have closed in the commonwealth since January 1.

"The PBMs have been putting our pharmacies out of business by underpaying them for prescriptions and when PBMs control 80% of the market we are dealing with a monster of a vertically integrated monopoly that I was not afraid to take on," Benham said.

She said local pharmacies provide a level of service unmatched by the big chains.

"They know our names when we walk through the door, they sponsor our kids' sports teams, they march in our parades, and much more," Benham said as the reason for introducing the bill.

"It is why I have been fighting the predatory PBMs even before the Governor mentioned them in his budget address," she said. "It is why I spent all this time building consensus with both parties in both chambers throughout the commonwealth. I am grateful that our Governor was willing to sign it into law."

Benham said the bill stands between the local pharmacies and certain bankruptcy.

"I have known pharmacists who have taken out second mortgages, liquidated their retirement accounts but the theme has still been the same - one to two years and they close," she said. My legislation gives them much-needed breathing room.

Act 77 requires that pharmacies are reimbursed the same amount as the PBM-affiliated pharmacies gives the insurance department critical oversight in investment tools, and provides patient protections.

"Our independent pharmacies step up big time every day in our communities, and we are repaying them by making this system fair," Benham said. "We are giving them the ability to continue to serve our neighborhoods."

She had the opportunity to visit Northern Bedford Pharmacy and could not speak highly enough about the level of service owner Joe Breton and his staff provided to the community.

"Pharmacies like Northern Bedford and Thompsons Pharmacy, we can't afford to lose them," Benham said.

Breton said in rural areas, the likely distance to hospitals and other higher-level care can serve as a roadblock for some to seek needed medical care.

"There are many times we have urged patients that they do need to go see a doctor or go to an ER or urgent care and that it is worth the 15 or 20-mile drive," he said.

Breton said they have patients come to them with injuries such as a cut on the face from a line drive to respiratory infections.

"They ask if we have what they need to help them or if they need to seek further medical care," he said.

Breton said keeping pharmacies in rural areas helps people take their medicines daily and prevents more serious medical complications.

"With about 150 pharmacies in Pennsylvania closing this year alone, what happens if mine is next," he said. "Act 77 is a great start but work needs to be done to ensure our pharmacy's viability in the future."

Shapiro talked about the importance of independent pharmacies in a community.

"You want to be able to go into a place where everyone knows your name, and where you can have a conversation with the pharmacist - see your neighbor and have that level of positive interaction," he said.

Shapiro said this is particularly important in rural communities where pharmacies are hard to access.

"I want to thank Bill and Joe for showing us all the love they had for what they do and the community that they serve," he said. "Our pharmacies deliver the medications and services that people need every single day to live healthy and productive lives."

Shapiro said since he was a kid, he went to the Abington Pharmacy in Montgomery County and still goes there today.

"We went through that circuit of getting amoxicillin every day for one of our kids who had an ear infection," he said.

Shapiro said pharmacies like Thompsons and Northern Bedford got caught in the middle between PBMs and drug manufacturers.

"The PBMs manipulated the system and profited from the pharmaceutical system at the expense of Pennsylvanians and our community pharmacies," he said.

Insurance Commissioner Michael Humphreys said Act 77 gives the Pennsylvania Insurance Department the tools to regulate PBMs and certain predatory practices.

It includes several provisions aimed at protecting Pennsylvanians and local independent pharmacies.

The act prohibits a PBM from paying independent pharmacies less than the amount that the PBM reimburses its affiliated pharmacies, it places strict regula