The confusion with the new Medicare changes has been well documented by the media. Pharmacy owners are spending a tremendous amount of time with customers assisting them pick a plan - and as you know, there are many plans. Assisting with picking plans is good customer service, but it is time consuming and doesn’t pay the bills. Owners and their staff have also had to spend time on the phone with the different insurance companies trying to get paid. Some states have had to step in and help fund the system to keep it moving. When the pharmacy owner does get paid the reimbursements are coming in slower, and as we all knew would happen, the reimbursements are less in 2006 than they were in years past.
Many expect to see razor-thin profit margins and some profit margins may even turn negative because pharmacies are getting even less than before from health insurers. Larger drug chains are better off because they can count on high volume and higher margins from the front end sales. Lower margins will hurt the non-chain drugstores, and reimbursements could end up low enough to make some independents fold.
The number of Medicare plans will expand in 2007 providing more choices for the consumer, but adding to the confusion the pharmacy owner must deal with. Next year, 48 states will offer more than 50 drug plans, with 23 states offering at least 55 choices.
Pharmacy owners can expect the continuation of increasing expenses while experiencing a downward slide in reimbursements.
Want to learn more about declining reimbursements? We encourage pharmacy owners to provide questions or feedback to the articles and comments posted at www.articles-sellingpharmacies.blogspot.com.
Brad MacLiver
http://www.pharmacyvaluations.com/
