Why Rural Pharmacy Closures Mean Higher Medication Costs
Rural pharmacies are a lifeline for people in remote areas, offering not only timely and convenient access to medications but also the opportunity to speak with a pharmacist if they have questions or concerns. These pharmacies have been hit hard by the shifting economy, leading many to close. In fact, between 2018 and 2023, rural retail pharmacies declined by 5.9% compared to 3.4% in urban areas. Furthermore, according to recent data from a Health Affairs study, over 29% of pharmacies in general closed between 2010 and 2021.
Pharmacy closure has already resulted in higher medication costs, and that trajectory doesn’t seem to be slowing. But why do rural pharmacy closures cause a spike in medication costs, and why are they closing?
Why Rural Communities Face Pharmacist Shortages
- Low Reimbursement Rates: Independent rural pharmacies are not given the same kickback from insurers and PBMs. Worse still, 80% of rural independent pharmacies are reimbursed below the cost of dispensing medications, placing them in a precarious financial position.
- Corporate Consolidation: Large chains and PBMs dominate drug pricing and networks, which is now pushing out smaller pharmacies.
- Workforce Challenges: New pharmacists are more likely to reside in urban areas, where they can access higher pay and more resources.
Why Are Local Rural Pharmacies Cheaper?
One of the great things about independent, local rural pharmacies is that they often offer competitive prices. Unlike chains, they source medications from multiple wholesalers to get the best deals. They may even work with discount programs or help patients find more affordable options. Even better, local, rural pharmacies tend to be more hands-on with customer relationships, knowing their clientele by name and understanding their needs. With this information, they can go the extra mile.
Also, in some cases, rural pharmacies opt out of pharmacy benefit manager (PBM) contracts when, financially, they simply don’t make sense. Avoiding this intermediary can help everyone save money. In fact, much of the US is now cracking down on PBMs due to rising costs.
How Rural Pharmacy Closures Impact Costs for Patients
Travel Expenses
Many of the communities that rely on rural pharmacies don’t have easy access to other medical professionals. If the pharmacy closes, they would have to travel a significant distance to fill their prescriptions.
The travel distance translates into gas costs, tolls, and wear and tear on vehicles. For those who don’t have vehicles, other transportation options must be considered. All of these factors quickly add up.
Loss of Pharmacy Support
Because of the lack of robust medical services in rural areas, pharmacists are often the first point of contact for people who need guidance. If pharmacies close, people will need to travel to speak with a professional, which is not always an option. It can cause patients to delay getting treatment, allowing conditions to worsen.
Inevitably, untreated medical issues get more serious over time. This results in needing further medications and other types of care, which means higher costs.
Without insight from medical professionals such as pharmacists, people will also struggle to make informed decisions on the medications that are most suitable for them. They may not realize that generic drugs can be just as effective, or they could hesitate to try less expensive brands out of mistrust.
Limited Access to Cheaper Options
If rural pharmacies close, this significantly reduces the options people have when buying even over-the-counter medications.
When there are at least two options, you can expect competition, which helps drive down prices. If one pharmacy closes, the other can price medications higher, and people will have no choice but to accept these added costs.
Pharmacy Benefit Manager Involvement
PBMs are companies that manage prescription drug benefits for large employers, health insurance plans, and other companies. They function as intermediaries between drug manufacturers, pharmacies, and insurance companies, or employers.
Unfortunately, PBMs may engage in questionable tactics that impact smaller, independent pharmacies the most. They often impose DIR fees, under-reimburse small pharmacies, steer customers to affiliated mail-order services, and use opaque pricing models that retain rebates. These practices favor larger chains and put rural pharmacies at a disadvantage, often contributing directly to their closures.
Risk of Medication Non-Adherence
Adhering to treatments is already difficult for people struggling to afford their prescriptions. If there is less competition and pharmacies can choose to price medications higher, non-adherence will increase.
Additionally, the added expense and inconvenience of needing to travel further could prompt people to delay filling their prescriptions.
Ultimately, this delay results in worsening conditions or the development of other health issues, requiring more expensive interventions that put a strain on patients’ finances as well as the entire healthcare system.
How Prescription Assistance Programs Can Help
For people living in more remote and rural areas who have trouble affording medication costs, one option is working with a prescription assistance program. These programs help people afford their medications by looking for all discounts and programs they may be eligible for.
These programs collaborate with pharmaceutical companies, pharmacies, and other businesses to help you find more affordable rates, assisting you in filling your prescriptions on time and adhering to your treatment as recommended by your doctor.
Get Affordable Access to Prescription Medications
Simplefill is a full-service prescription assistance company that researches, qualifies, and maintains patients’ enrollment in all sources of assistance available to them.
Apply today by calling 877-386-0206. A caring Simplefill representative will contact you within 24 hours to discuss your application and, if qualified, enroll you in the program.