Is Medicare Killing Your Local Pharmacy?

Many 'Mom And Pop' Operations Can't Survive On Lower Fees And Reimbursements

(CBS)  Don Walden owns the Medical Arts Pharmacy in Columbus, Mississippi, one of those small town, side of the road drug stores where they sell prescription drugs, CBS News correspondent Wyatt Andrews reports.

But Walden may have to sell this business and lay off his 10 employees. And the blame, he says, goes to Medicare part D, the new drug benefit for senior citizens.

"It's put me in a situation where my life's earnings have gone right out the window," Walden says.

This year, as Walden dispensed prescription after prescription, Medicare part D, at least indirectly, was dispensing with most of his profit.

Walden says the problem is that seniors get Medicare coverage through private insurance companies, which in turn, have lowered the fees and reimbursements they pay him.

"What they don't realize is they are putting us all out of business," Walden says.

That's not one of Walden's jokes. Gone this year is the old Taylor Drug Store in tiny Granville Ohio. There is no more Centenniel Merit Drugs in Monte Vista Colorado. When Randy Spainhour closed down Penslow's pharmacy in Holly Ridge North Carolina, he mailed his license back blaming, the "low reimbursement of Medicare."

A lot of these small town pharmacists are selling to the big chains, like Walgreens or Rite Aide, which typically offer to hire the pharmacist to work for them. This isn't illegal. The chains say they're just helping small businesses in trouble. The chains want Walden to sell too, but he doesn't describe that as help.

"They know I'm in trouble," Walden says.

For customers, the cost of their prescriptions should stay about the same, but what changes is the convenience. Walgreens might be 20 miles away. Hattie Burgin, who doesn't own a car, says she'd miss Walden's place.

"I just feel loved when I come in here," she says.

So what Wal-Mart once did to rural downtowns, Medicare is doing to the rural drug store. Walden figures he'll keep going for just a few more months, and go non-stop for those last few smiles.

"You know I am so broke I can't pay attention," he says.

[poormam]

What a terrible shame that Medicare Part D is causing local independent pharmacies to close. While Medicare Part D has helped some senior citizens, it should not be at the expense of the local pharmacies. This is just not fair, not good sense, and certainly not moral. These pharmacists have worked diligently for years to serve their customers, not only with important medications, but advice and counsel, often saving them trips to doctors and hospitals.Many of these pharmacies have been the lifeline for people and have even delivered prescriptions to people who are unable to get out and drive. There will never be anything to replace the local independent pharmacy. It is a terrible crime for the government to have allowed Medicare Part D to cause the closing of so many pharmacies.In America, a small business owner should be allowed a reasonable profit without the government taking it from him. What has happened to us?

[mactruck11]

Hey Perception5:
Read this excerpt from the House of Reps. Small Busineess Committee:

"There are about 22.4 million non-farm firms in the U.S, according to 2001 data. Small businesses represent more than 99 percent of all employers. They also employ 51 percent of private-sector workers, 51 percent of workers on public assistance, and 38 percent of workers in high-tech jobs. Small businesses account for nearly all of the self-employed, which comprise of 7 percent of the work force.

In addition, small businesses produce two-thirds to three-quarters of all the net new jobs. They also produce 51 percent of private sector output as well as represent 96 percent of all exporters of goods."

We Small Businesses pay Taxes too. Maybe not a big lump sum that The big Corporates do, But add us all up and we pay more overaall.

[perception5]

dmorg4, fyi.........no big business means no tax receipts either corportate or from the tens of millions of Americans that they employ........
Take a class in economics..........

[alimech]

To heck with the Pharmacies......Medicare is killing most of us 'oldsters'. SS gives one $700 a month, then takes back almost $100 for Medicare!! We often are allowed to get generic drugs... and no prescriptions from Canada.

[dmorg4]

Big goverment and big bussiness have ruined
america