by Jay Sibulkin
To the Editor,
Governor Healey’s proposed budget includes a pharmacy assessment that will cause many pharmacies to close. This will require that patients travel longer and pay more to get medications, vaccines, and other services. Under this plan pharmacies will have to pay an assessment of 6% up to $2 per prescription to close the projected Medicaid budget gap in Massachusetts for FY26.
I own and operate Allen’s Pharmacy. We have been serving the Cape Ann area since 1856 and are proud of our 169 years of service to the community. Unfortunately, we may not get to 170 years of service if this assessment is implemented.
The community pharmacy industry is very competitive and undergoing significant consolidation. A recent study has concluded that 1 in 3 community pharmacies in the US have closed since 2010. This will exacerbate the community pharmacy closures and create additional pharmacy deserts. Massachusetts already has fewer pharmacies than any other New England state and less than many other states in the US.
The reason for the closing of pharmacies, particularly independent pharmacies, is unfair reimbursement by Pharmacy Benefit Managers (PBMs). The top 3 PBMs are Fortune 10 companies and control 80% of pharmacy claims. A review of the financial statements of these companies show massive profits. Instead, the Governor and the Legislature should require that PBMs pay the assessment and pass legislation that would stop additional community pharmacies from closing.
The pharmacy assessment is a bad prescription for Cape Ann and Massachusetts. I urge Senator Bruce Tarr and Representative Anne-Margaret Ferrante to make sure this provision is not included in the final budget and to pass the above legislation.
Jay Sibulkin
Mr. Sibulkin is the owner of Allen’s Pharmacy in Manchester
