Home Article NCPA supports provision in budget bill

NCPA supports provision in budget bill

By HME News Staff

Updated 10:08 AM CDT, Tue May 27, 2025

ALEXANDRIA, Va. – The National Community Pharmacists Association applauds the passage of a budget reconciliation bill in the House of Representatives that includes language that would eliminate pharmacy benefit manager spread pricing. It also would require transparent and fair reimbursement (Medicaid fee-for-service) in all state Medicaid managed care programs. “While doing nothing to reduce the cost of drugs for Medicaid beneficiaries, spread pricing has been costing federal and state taxpayers hundreds of millions of dollars every year,” said NCPA CEO B. Douglas Hoey, pharmacist. “Through low and underwater reimbursements, PBMs have been systematically squeezing local pharmacies and helping drive them out of business. It’s egregious. Moving to a fairer pharmacy reimbursement system that ends spread pricing and requires transparent, predictable reimbursements to pharmacies is a step in the right direction. We urge the Senate to swiftly pass these provisions and President Trump to sign them into law.” The NCPA says spread pricing is what happens when PBMs charge insurance plans like Medicaid one price for prescription medications, reimburse pharmacies that dispense them a much lower price, and then keep a big chunk of the difference (the spread) for themselves.