Editorial: Small pharmacies at risk

Saturday, Sept. 22, 2007 | 7:43 a.m.

More than 1,000 independent pharmacists in rural areas closed shop last year. For many, competition from the chain stores was not the reason.

The last straw, many say, was the Medicare drug benefit, administered by private insurers that they say take months to pay claims. Long gaps in income, they say, force them to borrow heavily and incur steep interest charges.

An insurance industry spokesman told the Associated Press that "we pay within 30 days." But University of Texas researchers, commissioned by independent pharmacists, last year examined 3 million prescription drug claims. They found that payments for more than 1.3 million of them exceeded 30 days.

Before the drug benefit, independent pharmacists were generally paid on the spot, in cash. Through a trade group, they support legislation requiring that their claims be paid within 14 days. The legislation has 200 co-sponsors in the House and about a dozen in the Senate, according to AP.

The Government Accountability Office should study the independent pharmacists' complaints. If they're found to be true, congressional leaders should allow the legislation to come up for a vote , and we hope that it would pass.

The drug benefit is necessary, but we think it can be administered without putting many independent pharmacists out of business.

archive