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A recent analysis by the Pharmaceutical Care Management Association estimates that Alabama’s proposed Senate Bill 99, (SB99), could lead to $347 million in additional prescription drug costs for consumers in its first year, and over $3.4 billion in the next decade. The legislation, sponsored by Senator Larry Stutts, R-Tuscumbia, seeks to impose a $10.64 fee on every prescription filled in the state.
The PCMA report states, “Enacting just the fee provision of the bill could cost Alabama employers, health plan sponsors, and patients almost $347 million in excess drug spending in the first year alone and over $3.4 billion over the next 10 years.” The report further warns, “The proposed Alabama legislation includes a provision to implement a mandatory dispensing fee, and as a result, drug spending in Alabama will soar. The burden of these increased costs will fall on patients and employers.”
The Alliance of Alabama Healthcare Consumers has also voiced opposition to SB99 and the similar Senate Bill 93, sponsored by Senator Andrew Jones. AAHC Executive Director Robin Stone expressed concerns, stating, “Imposing a permanent fee on every prescription filled in Alabama is not a solution to the problem of rising drug costs; the new $10.64 dispensing fee designated for pharmacy owners is a costly burden that will ultimately create more problems for consumers and employers.” Stone emphasized that the legislation fails to address the root cause of high drug prices, adding, “Both bills fail to address the exorbitant drug prices set by drug manufacturers. This approach ignores the real driving source of rising healthcare costs—skyrocketing drug prices from national manufacturers.”
Stone warned, “If this new proposed $10.64 dispensing fee for pharmacy owners is approved, it will be forced down the supply chain and will be paid by employers, families, and other consumers, and not Pharmacy Benefits Managers.”
Supporters of SB99 argue that the fee would help independent pharmacies remain financially viable amid reimbursement challenges. However, opponents contend that the legislation could lead to increased out-of-pocket expenses for Alabama residents. As debate over the bills continues, AAHC has urged lawmakers to focus on policies that reduce prescription drug costs rather than implementing additional fees that could impact affordability for families and businesses.
The PCMA, based in Washington, D.C., is a national association representing America’s pharmacy benefit companies and the employers they support. Virtually all of Alabama’s public and private employers utilize pharmacy benefit managers to secure savings on rising drug prices, improve patient health outcomes, and support access to quality prescription drug coverage.
As the legislative session progresses, stakeholders on both sides of the issue are closely monitoring developments related to SB99 and SB93, recognizing the significant impact these bills could have on Alabama’s healthcare landscape.
