Medicare Part D 2027 MFP Drugs Underscores the Urgent Need for Congress to Pass H.R. 5031 / S. 3159
The Senior Care Pharmacy Coalition (SCPC), the leading voice for the nation’s long-term care (LTC) pharmacy community, released the following statement regarding the pricing announcement of 2027 MFP drugs under the Medicare Part D drug price negotiation program.
“The Centers for Medicaid and Medicare Services’ (CMS) announcement of the negotiated prices for the 2027 Medicare MFP drugs underscores the urgent need for Congress to pass the Preserving Patient Access to Long-Term Care Pharmacies Act (H.R. 5031, S. 3159), to ensure continued access to essential medications and pharmacy services for more than two million seniors and other residents in long-term care facilities.
The 2026 negotiated price drugs, which take effect January 1, already threaten access to prescription drugs and LTC services for Medicare beneficiaries. More than 60% of LTC pharmacies may have to close critically needed locations next year and more than 80% expect service reductions and layoffs – cutbacks that will disproportionately impact rural areas. A recent ATI Advisory white paper commissioned by SCPC anticipated a worsening outlook based on the actual 2026 negotiated prices and the highest negotiated prices for 2027 that the law would allow. The analysis concluded that the average LTC pharmacy would see return on dispenses degraded by 35%– before debt service, capital reinvestment, and taxes– posing an existential threat to small LTC pharmacies and a material threat to the entire sector. With actual 2027 negotiated prices far lower than the statutory ceiling, the impact on LTC pharmacies and the facilities and patients they serve, will only worsen the impending crisis.
While we strongly support lower drug prices for consumers, we know that policymakers do not intend for lower Medicare prices to threaten access to prescription drugs and essential LTC pharmacy services for seniors in nursing homes. Only LTC pharmacies provide– and are legally required to provide– consultant pharmacist expertise, enhanced pharmacy services, including medication management, specialized packaging, and 24/7/365 services. Seniors cannot afford to lose the specialized care they rely on– and neither can nursing homes, which are legally required to use LTC pharmacies to provide these essential services.
According to a new analysis, if Congress fails to act, Medicare spending could increase $1.9 billion to $4.8 billion over the next 10 years, because the loss of LTC pharmacy services will lead to increased hospital utilization, including more emergency room visits and more hospital admissions. By contrast, fixing the problem now would cost only $826 million over the next 10 years– a far better deal for seniors and American taxpayers.
The country is facing a long-term care crisis in 2026. Congress must act now to pass H.R. 5031 / S. 3159 to avoid this disaster,” said Alan Rosenbloom, President and CEO of SCPC.
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