A recent investigation conducted by the University of Southern California and published in Health Affairs highlights a significant trend: retail pharmacies excluded from preferred networks under Medicare Part D face a notably higher risk of closure. This research underscores the challenges faced by independent pharmacies, particularly those located in underserved communities, as they navigate an increasingly competitive landscape.

The analysis reveals that the expansion of preferred pharmacy networks has reshaped the prescription drug benefit environment. Pharmacies not favored by these networks experience financial pressures due to higher out-of-pocket costs imposed on customers. Consequently, non-preferred pharmacies encounter difficulties sustaining their operations. Notably, the study found that pharmacies excluded from participating as preferred providers were disproportionately affected, with those entirely outside the network facing the greatest peril. Additionally, disparities emerged between independently owned pharmacies and larger chains, as well as between pharmacies in affluent neighborhoods versus those in low-income or minority areas.

This situation calls for urgent policy reform aimed at addressing inequities within pharmacy networks. Experts suggest that regulatory measures could help expand access standards and mandate preferred status for critical pharmacies. By ensuring fairer reimbursement practices, especially for pharmacies operating in underserved regions, policymakers can support the sustainability of essential healthcare services. The findings emphasize the importance of equitable network design to preserve community access to vital pharmaceutical care. Such reforms would foster a more inclusive healthcare system, benefiting all stakeholders involved.