Independent Pharmacies Face Dire Straits Under Medicare Drug Price Negotiation Program

NCPA report raises concerns that Medicare Drug Price Negotiation program will result in community pharmacy cash flow crisis, reduced profitability, and payment delays.

The National Community Pharmacists Association (NCPA) is sounding the alarm about the potential devastation facing independent pharmacies due to the Medicare Drug Price Negotiation Program (MDPNP). The program, a key component of the Inflation Reduction Act, aims to lower drug costs for seniors, but according to NCPA, it's structured in a way that could force many independent pharmacies out of business and restrict patient access to essential medications.

A recent analysis, Unpacking the Financial Impacts of Medicare Drug Price Negotiation, conducted by 3 Axis Advisors for NCPA, reveals a grim outlook for pharmacies under the MDPNP. The report concludes that the program introduces a fundamental shift in pharmacy operations, with new reimbursement practices that threaten financial stability. The primary concerns revolve around cash flow disruptions, reduced profitability, and payment delays.