Many active and retired teachers are facing a big change in how they obtain prescription drugs after a new contract negotiated on their behalf by the Public Education Employees’ Health Insurance Plan.
Most locally owned pharmacies, which are members of the American Pharmacy Network Solutions (APNS) have refused to join in the agreement with PEEHIPS, which agreed to the plan with MedImpact, a California based provider.
APNS represents 338 pharmacies in Alabama, which includes independent or chain pharmacies. At the heart of the issue is that the new agreement drastically reduces or eliminates margins of profits for many pharmacies. According to information from APNS, the PEEHIP contract would not cover the cost of pharmacies acquiring drugs, much less the cost to dispense medications.
PEEHIP, in a letter posted on the Retirement Systems of Alabama website, tells members that it was forced to cut costs in all areas of its benefit programs to keep the plan financially sound and sustainable.
Allen Murphy, owner of Murphy’s Pharmacy in Holly Pond, dropped the plan because of the costs, which will force many teachers in that area to drive elsewhere for service.
“This represents close to 9 percent of our business, and that’s going to hurt,” Murphy said. “We negotiated for six months to no avail. I hate to see the business go. Some of these customers have been with us for many years. They’re upset and we’re upset.”
* Read the full version of this story in the Sunday, Jan. 9, 2011, print edition of The Cullman Times.
* David Palmer can be reached by e-mail at dpalmer@cullmantimes.com, or by telephone at 734-2131, ext. 213
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Allen Murphy, owner of Murphy's Pharmacy in Holly Pond, dropped a new prescription drug plan because of the costs, which will force many teachers in his area to drive elsewhere for service. Amanda Shavers-Davis
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New prescription plan impacts local pharmacies, teachers
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