Rite Aid Closing More Pharmacies in Ohio, Michigan
More pharmacies are closing in Ohio and Michigan small towns amid complaints about middleman reimbursements and a difficult retail environment.
Philadelphia-based Rite Aid is closing an additional 27 stores in the two states, according to a bankruptcy filing reported on Monday by WTOL in Toledo. The stores are among 200 of the company’s 2,000 stores that it said it would close when it filed for bankruptcy protection last October. They include pharmacies in 15 Ohio towns such as Ashtabula, Defiance, Coshocton, Wheelersburg, St. Mary’s, and Tiffin. Another 12 listed for closure in Michigan include such towns as Ludington, Wyandotte, Spring Lake, Bay City, Burton, and Flint.
The businesses, known as pharmacy benefit managers, or PBMs, represent insurers and the biggest three are all part of the same corporation as a major insurer. They decide which drugs are covered, and they decide how much to reimburse pharmacies in a non-transparent system. The biggest three, CVS Caremark, OptumRx, and Express Scripts, are estimated to control access to 80% of all insured patients in the United States. |