Major Pharmacy Reform Passes NCGA In Big Win for Consumers

Major pharmacy reform legislation, titled the SCRIPT Act, passed the North Carolina General Assembly unanimously this week.

Once signed into law, the reforms made through this legislation will put money back in the pockets of consumers, increase transparency into PBMs and PSAOs, and provide much needed support for rural independent pharmacists.

“This is broad-reaching, transformative reform with respect to our prescription drug market here in North Carolina,” said Senator Benton Sawrey, the primary architect of the bill. “It provides unique opportunities for our pharmacists around the state, strengthens our independent pharmacy network, and provides needed transparency.”

“Today is a big day for North Carolina,” said Representative Heather Rhyne, who led reform efforts in the House. “For you as a consumer. What does this mean? It means better access to healthcare with fewer community pharmacies closing their door.”

The SCRIPT Act was the culmination of months of negotiations between the House and Senate with the final product representing a first-of-its-kind effort to support independent and rural pharmacies, while driving down costs for consumers.

Here is what the legislation does:

• Makes sure consumers receive the benefit of prescription drug rebates at the pharmacy counter. Before, those rebates could be kept by a payer to offset other costs. Now they will go directly to the patient.

• Increases transparency into all actors in the prescription drug supply chain. It shines a light on Pharmacy Benefit Managers (PBMs), Pharmacy Services Administrative Organizations (PSAOs), and prescription drug pricing.

• Allows isolated rural and urban pharmacies to pursue and enter into unique contracts to better serve their communities. For example, these pharmacies can be reimbursed at higher amounts to ensure certain drugs are kept in stock. Or they can partner with plans to serve as a front door to the healthcare system by screening for conditions like diabetes, high cholesterol, or hypertension. Before, if you wanted to offer these benefits to a rural pharmacy, you had to offer them to every pharmacy in a statewide network. This made the cost unaffordable. Now, these benefits can be narrowly tailored to ensure better access while balancing consumer affordability.

• Prohibits PSAOs from requiring independent pharmacies to buy more expensive drugs from certain wholesalers when less expensive options are available. This will help make sure consumers are getting access to the lowest cost when they go to their pharmacy.

• Ensures independent pharmacies, and those in pharmacy deserts are reimbursed an amount that is at least equal to what it cost them to obtain a drug. This will help independent pharmacies stay in business and continue to provide important and quality services to their community.

Senator Sawrey, Representative Rhyne, and their colleagues who worked on this bill should be commended.

With its passage, no state in the country has greater transparency into the prescription drug supply chain, or has enacted more consumer-friendly policies to support independent pharmacies, than North Carolina.