Montgomery, AL – A recent cost analysis conducted by the Pharmaceutical Care Management Association (PCMA) has projected that Senate Bill 99 (SB99) could result in significant increases in prescription drug spending for Alabama’s healthcare consumers. According to the analysis, the legislation, which includes a $10.64 fee on every prescription filled in the state, could lead to an excess of $347 million in drug spending during the first year. Over the next decade, costs could exceed $3.4 billion.
The PCMA, a national association based in Washington, D.C., represents pharmacy benefit management companies (PBMs) and their work with public and private employers in Alabama to negotiate savings on drug prices. The association’s report estimates that the fee provision in SB99 alone could cause substantial financial burdens for both patients and employers, as it would result in increased drug spending across the state.
The report notes that the proposed mandatory dispensing fee would contribute to a rise in drug spending in Alabama, with the additional cost being passed down to patients and employers. PBMs, which work to negotiate discounts and improve healthcare access, have raised concerns that this new fee could exacerbate financial pressure for consumers.
Robin Stone, Executive Director of the Alliance of Alabama Healthcare Consumers (AAHC), expressed opposition to the bill, commenting on the potential impact on employers and their employees. “The cost of this new fee would be an enormous and permanent burden on employers and their employees,” Stone said. “Spending on prescription drugs continues to increase annually, and this legislation does not address the root causes of rising drug prices. Instead, it adds a new fee, requiring patients and employers to pay more for the same prescriptions.”
SB99, introduced by Senator Larry Stutts (R-Tuscumbia), has been part of an ongoing debate over how to support Alabama’s independent pharmacies, which have faced declining reimbursement rates. Supporters of the bill argue that it is necessary to ensure these pharmacies receive adequate compensation, which in turn could help maintain pharmacy access across the state.
However, critics of the bill, including AAHC and PBMs, are concerned about the broader economic implications for healthcare consumers. They argue that increasing prescription costs could further strain an already burdened healthcare system, particularly for those who rely on prescription medications.
As SB99 moves through the legislative process, the discussions surrounding its potential financial impact continue, with various stakeholders closely following the developments and considering the long-term effects on Alabama’s healthcare landscape.
