Long-term healthcare patients are facing an impending crisis due to the price locks created by Joe Biden’s signature legislation, the Inflation Reduction Act. In a textbook example of the law of unintended consequences, the very protections that Biden intended to put in place are, in effect, increasing the risk for many long-term care patients, especially those on Medicare.
What was touted as a dramatic cost-saving plan is causing many of the long-term care (LTC) pharmacies supplying these patients to sell medications at significantly lower prices. In many cases, this causes unsustainable business operations for many of the LTC pharmacies. In other words, they can’t stay in business because Biden’s law is making them go broke. Many critics of the Inflation Reduction Act, who nicknamed it “The Green New Deal,” predicted this very outcome. This has been the same argument made against artificial business pricing models, such as raising the minimum wage: setting business factors that force businesses to operate at a loss, or at least at unsustainable profit levels, makes it inhospitable for companies to continue operating.
Fortunately, at least one Arizona lawmaker is speaking out against the potential loss of LTC pharmacies. The Arizona Globe received an exclusive statement from State Representative Tony Rivero (D-27), discussing what some would call a bold plan to ensure that LTC patients continue to receive the medications they need. Rivero is promoting a bipartisan federal bill that could help protect the 17 LTC pharmacies in Arizona in the short run until a long-term resolution is addressed.
Rivero brings some serious gravitas to the potential crisis. Before his election to Arizona’s District 27, he served as the CEO of Rocky Point Health Clinic, the preeminent healthcare provider for Puerto Peñasco, Mexico, and surrounding areas. That experience exposed him to the reality that many long-term-care patients are facing multiple chronic illnesses, with some requiring as many as 12-13 prescriptions per day. Many of these patients reside in nursing homes and assisted living facilities, which places them among society’s most vulnerable. According to a recent study, Arizona has over 91K seniors receiving Medicare who need long-term care services.
In his statement to the Arizona Globe, Rep. Rivero said, “…the Biden Administration’s Inflation Reduction Act could force these pharmacies out of business. Newly negotiated prices for certain high-cost drugs will cause LTC pharmacy profit margins to collapse.” He continued, “Because of this change, we will see LTC pharmacies close their doors. In Arizona, we have just 17 pharmacies dedicated exclusively to long-term care—or 78 if you count pharmacies that provide both specialized LTC services and traditional retail pharmacy services. A recent survey found that the 2026 prices alone would force 60% of LTC pharmacies nationwide to close locations, 90% to lay off workers, and 80% to reduce services. Applied to Arizona, this means we could lose up to 10 of our dedicated LTC pharmacies and see service reductions at dozens more.”
Rivero also noted, “And when these pharmacies close, the nursing homes that depend on them will follow suit. Without the availability of skilled pharmacies to stay compliant with federal law, these facilities will be forced to close. This results in dedicated professionals losing their jobs and seniors without a place to stay or the care they need.”
Rivero told the Globe that all is not lost. He states that a “…bipartisan group of federal legislators has proposed a bill that could help solve this crisis. The Preserving Patient Access to Long-Term Care Pharmacies Act would establish a temporary $30 supply fee per prescription of newly priced drugs. This simple and inexpensive fix is exactly what LTC pharmacies need to guarantee their financial stability and continued operations through 2026 and 2027.”
He is also calling on the Trump administration to take up this cause, adding, “The Trump Administration can act through the CMS (Centers for Medicare & Medicaid Services) to implement an emergency demonstration project or waiver. We know that Congressional action can take time, and unfortunately, we do not have that luxury. Once closures begin, the damage will spread quickly. Arizona’s congressional delegation and the Trump Administration must use every tool available to protect our long-term care system. I urge Arizonans to contact their congressional delegation and ask them to support the Preserving Patient Access to Long-Term Care Pharmacies Act. Washington needs to hear that protecting access to long-term care is a priority for Arizona families.”
In the current political climate, bipartisan projects and resolutions seem to be a toxic concept. Fortunately, we still have lawmakers willing to take that risk.
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