Friends and neighbors,
The Federal Trade Commission recently released a report highlighting a problem many of us have been talking about for a while: pharmacy benefit managers (PBMs) are inflating drug costs and putting intense pressure on local pharmacies in rural Minnesota. This issue has been affecting our rural communities for years, as small pharmacies continue to close at an alarming rate. We lost 19 in 2023 alone. These closures and increased costs hit our small-town residents hard, forcing many to travel long distances for medications – or worse, go without essential prescriptions.
Last session, I introduced a bill – SF 4843 – that would make life a little bit easier for these small-town pharmacies. The bill requires health plans to pay a minimum dispensing fee for prescriptions filled under state healthcare programs. It would provide crucial support for our independent pharmacies, which are often the only source of medications and personalized care for residents of these small towns. For many seniors and folks with limited mobility, these local pharmacies are really important lifelines. They provide not just medications but also essential advice and support.
Deborah Kevany of Kevany Drug in Winsted testified in support of the bill during an April hearing. She noted that "at one time we had an abundance of independent pharmacies. Now we are down to 108 of us and continue to lose more every year."
The FTC's findings reveal that the largest PBMs control 94% of prescription drug claims in the U.S. This concentration of power has been hurting our local pharmacies and potentially driving up costs for all Minnesotans. These inflated costs put a lot of pressure on family budgets, often forcing them to choose between the medications they need and other necessities.
We have to level the playing field so that more Greater Minnesota communities don't lose access to vital pharmacy services. By supporting our local pharmacies, we're working to preserve jobs and protect healthcare access for all Minnesotans – especially those in small towns across the state
If you have any questions, please reach out.
