New SCPC Member Survey Shows More than Half of America’s LTC Pharmacies May Close Locations Without Congressional Action
Washington, D.C. (March 12, 2025) — The Senior Care Pharmacy Coalition, the leading national voice for the long-term care (LTC) pharmacy community which provides essential and legally required services for millions of seniors in nursing homes and assisted living facilities across the country, today released the results of a new member impact survey on the unintended consequences of Medicare Part D price negotiation policies included in the Inflation Reduction Act.
The results of this new impact survey underscore the need for immediate Congressional action as more than half of SCPC’s member LTC pharmacies report that they would be forced to close locations, leaving many patients without access to critical LTC services.
“SCPC has repeatedly warned that, absent Congressional action, new Medicare Part D drug pricing policies will soon jeopardize the ability of many LTC pharmacies to maintain operations and continue providing essential, specialized, and legally required pharmacy services to seniors and other LTC patients,” said Alan Rosenbloom, President/CEO of SCPC. “LTC pharmacies play a unique role in our health care system, and there is no substitute for the services LTC pharmacies provide, such as enhanced medication management, consultant services, quality controls, and much more. But right now, the future of long-term care pharmacy is on the line unless Congress acts swiftly.”
Congress must address this problem before January 2026, or SCPC’s LTC pharmacy members will suffer the following severe repercussions:
- 60% would be forced to close pharmacy locations.
- 91% would be forced to lay off pharmacy staff.
- 85% would be forced to limit essential services.
- 82% would be forced to shift costs to LTC customers.
- 56% would be challenged to dispense certain medications.
Many SCPC member LTC pharmacies also report that they would be forced to eliminate field services, reduce medication deliveries to patients and facilities, limit investments in new technology and infrastructure, reduce pharmacy staff, and terminate relationships with many of their long-term care customers, particularly those in rural and underserved areas that are often more difficult and expensive to serve.
Government mandated Medicare drug pricing policies inadvertently break the LTC pharmacy payment model because Medicare Part D and PBMs force LTC pharmacies to subsidize inadequate payment with revenues from expensive brand-name drugs. LTC patients rely on 8 of the first 10 drugs subject to Medicare- negotiated prices, leaving LTC pharmacies to face significant financial losses from dispensing MFP drugs when new prices take effect in January 2026.
A recent SCPC commissioned report showed a total average cost to dispense for LTC pharmacies of $14.98 per prescription, which is more than double the average base dispensing cost incurred by many other pharmacies. Despite this significantly higher cost to dispense, LTC pharmacies are on average only reimbursed one-third of that amount. Applying new Medicare Part D negotiated prices on LTC pharmacies will result in an unsustainable 27.5% loss for delivering their essential services.
SCPC is calling on Congress to update policy and regulations to reflect the unique services LTC pharmacies provide. The LTC Pharmacy Fix would create a new $30 LTC pharmacy supply fee to be paid each time an MFP medication is dispensed, ensuring LTC pharmacies can continue providing essential services and access to care to millions of patients in LTC nationwide.
“These alarming consequences prove the need for Congress to immediately address the broken LTC pharmacy payment model and pass the LTC Pharmacy Fix,” added Rosenbloom. “Time is running short – LTC pharmacies and the patients they serve are counting on this solution that protects access to essential LTC services.”
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About Senior Care Pharmacy Coalition
The Senior Care Pharmacy Coalition (SCPC) is the only national organization exclusively representing the interests of LTC pharmacies, representing 75% of the sector overall. Its members operate in all 50 states and serve 850,000 patients daily in skilled nursing and assisted living facilities across the country. Visit seniorcarepharmacies.org to learn more.
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