New Report Demonstrates Worsening Impact of Medicare Part D Negotiated Drug Prices on Long-Term Care Pharmacies and the Vulnerable Seniors They Serve

DATE: October 27, 2025

Harbinger of deepening long-term care crisis in 2026 unless Congress swiftly passes essential LTC Pharmacy Fix

Washington, D.C. — The Senior Care Pharmacy Coalition (SCPC), the national voice for the long-term care (LTC) pharmacy sector, today released the Economic Impact of Medicare Part D Negotiated Drug Prices on Long-Term Care Pharmacy Economics, with analytics performed by ATI Advisory. The report finds that the combined impact of actual 2026 Medicare Part D negotiated drug prices and expected 2027 prices through will negatively impact access to prescription drugs and essential LTC pharmacy services for millions of seniors, due to significant financial losses for LTC pharmacies.

This report underscores the growing likelihood of a crisis affecting America’s entire long-term care sector next year. The report shows that the average LTC pharmacy could operate at a nearly 3% loss by 2027. The analysis– based on the highest possible prices the federal government could legally negotiate for 2027– may underestimate the impact since actual 2027 negotiated prices are expected to be lower than the maximum allowed by law.

An earlier SCPC survey of LTC pharmacies reported that the 2026 prices alone would cause 60% of SCPC members to close pharmacies, 90% to lay off workers, and 80% to reduce services to seniors in LTC facilities. As a result, seniors will lose access to prescription drugs and essential LTC pharmacy services, especially in rural areas.

“LTC pharmacies support lower drug prices for consumers. However, policymakers must address the unintended, but significant consequences these policies will have on seniors’ access to prescription drugs essential pharmacy services,” said Alan Rosenbloom, President and CEO of SCPC. “This new report confirms what we already know: LTC pharmacies and the patients they serve face devastating consequences in 2026 that will worsen appreciably in 2027 without immediate relief from policymakers in Washington.”

“SCPC has worked closely with Representatives Beth Van Duyne (R-TX) and Brad Schneider (D-IL) to introduce H.R. 5031, the Preserving Patient Access to Long-term Care Pharmacies Act,” Rosenbloom added. “This legislation would avert the looming crisis by creating a $30 supplemental supply fee on each MFP prescription to cover dispensing fees for the specialized services of LTC pharmacies.”

LTC pharmacies serve some of the nation’s most vulnerable patients. These individuals have significant physical impairments and limitations and suffer from multiple chronic conditions. They rely on multiple prescription medications that require enhanced clinical and special services from LTC pharmacies. Most of these patients get their drugs and enhanced LTC pharmacy services through Medicare Part D, which in turn forces LTC pharmacies to rely on reimbursements for brand name drugs for financial viability. With 75% of revenues coming from Medicare Part D, LTC pharmacies may not survive the downstream impact of negotiated Medicare Part D prices without targeted relief.

The new report, which is based on data representing nearly 2,500 LTC pharmacies across the country, combines actual negotiated Medicare Part D prices for 2026 and the highest possible prices the Centers for Medicare and Medicaid Services (CMS) could legally negotiate for 2027. It demonstrates that the impact on LTC pharmacies and the millions of patients they serve in nursing homes, assisted living facilities and other long-term care facilities will only get worse as 15 more prescription drugs become subject to price negotiations in 2027.

This report underscores the growing likelihood of a crisis affecting America’s entire long-term care sector next year. In fact, the report shows that the average long-term care (LTC) pharmacy could operate at a nearly 3% loss by 2027. The report– based on the highest possible prices the federal government could legally negotiate for 2027– may underestimate the impact since actual 2027 negotiated prices are expected to be lower than the maximum allowed by law.  

An earlier SCPC survey of LTC pharmacies reported that the 2026 prices alone would cause 60% of SCPC members to close pharmacies, 90% to lay off workers, and 80% to reduce services to seniors in LTC facilities. As a result, seniors will lose access to prescription drugs and essential LTC pharmacy services, especially in rural areas.  

“LTC pharmacies support lower drug prices for consumers. However, policymakers must address the unintended, but significant consequences these policies will have on seniors’ access to prescription drugs essential pharmacy services,” said Alan Rosenbloom, President and CEO of SCPC. “This new report confirms what we already know: LTC pharmacies and the patients they serve face devastating consequences in 2026 that will worsen appreciably in 2027 without immediate relief from policymakers in Washington.”  

“SCPC has worked closely with Representatives Beth Van Duyne (R-TX) and Brad Schneider (D-IL) to introduce H.R. 5031, the Preserving Patient Access to Long-term Care Pharmacies Act,” Rosenbloom added. “This legislation would avert the looming crisis by creating a $30 supplemental supply fee on each MFP prescription to cover dispensing fees for the specialized services of LTC pharmacies.”  

LTC pharmacies serve some of the nation’s most vulnerable patients. These individuals have significant physical impairments and limitations and suffer from multiple chronic conditions. They rely on multiple prescription medications that require enhanced clinical and special services from LTC pharmacies. Most of these patients get their drugs and enhanced LTC pharmacy services through Medicare Part D, which in turn forces LTC pharmacies to rely on reimbursements for brand name drugs for financial viability. With 75% of revenues coming from Medicare Part D, LTC pharmacies may not survive the downstream impact of negotiated Medicare Part D prices without targeted relief.  

The new report, which is based on data representing nearly 2,500 LTC pharmacies across the country, combines actual negotiated Medicare Part D prices for 2026 and the highest possible prices the Centers for Medicare and Medicaid Services (CMS) could legally negotiate for 2027. It demonstrates that the impact on LTC pharmacies and the millions of patients they serve in nursing homes, assisted living facilities and other long-term care facilities will only get worse as 15 more prescription drugs become subject to price negotiations in 2027.