As prescription prices continue to rise nationally and throughout the state, legislative leaders in Alabama have begun to look for solutions to solve the growing problem.
With that goal in mind, State Rep. Phillip Rigsby (R-Huntsville) brought forward legislation in the House that he believes could play a significant role in addressing the increase in prices.
Proponents of Rigsby’s bill say The FAIR Meds Act, would ensure access to healthcare for patients, provide increased transparency in prescription drug pricing, enhance free market competition, and also give patients access to the pharmacy of their choice in Alabama.
Not every medical organization in the state is on board with the legislation. The Alliance of Alabama Healthcare Consumers, for example, quickly came out against it.
Robin Stone, executive director of the Alliance, expressed deep concerns about HB 238.
“This legislation is completely unfair and places a severe financial burden on the 2.75 million Alabama consumers that receive pharmaceutical benefits through their employers,” Stone said. “Alabama families are struggling with rising prices and they cannot afford to pay an additional prescription tax that does nothing to improve their quality of care or expand access to care.”
“The Legislature should reject this proposal that increases costs on consumers while ignoring the real problem with skyrocketing prescriptions, which is the cost of drugs set by the manufacturers. HB238 will only encourage drug prices to go higher.”
Stone also said that the bill carries a hidden tax that will negatively effect Alabamians finances.
“This legislation contains a camouflaged tax that would add $10.64 to every prescription dispensed in Alabama to any person who has pharmaceutical benefits,” he said. “That tax on prescriptions would be collected and re-distributed to pharmacies as a ‘dispensing fee.’ It will cost individuals an estimated $275 per person per year. A family of four would pay an additional $1,100 annually.”
“The anticipated overall cost of this new tax is $800 million annually.”
CJ Pearson, a prominent conservative candidate for the Georgia state house and a University of Alabama graduate, called the bill ‘disastrous.’
URGENT: Alabama’s House Bill 238 is a disastrous proposal that threatens Alabama businesses. Let’s break it down:
Increased Consumer Costs: This bill slaps an additional $10 fee on every prescription, burdening Alabamians with an estimated extra cost of $1,100 for families.…
— CJ Pearson (@thecjpearson) March 5, 2024
Two well known medical organizations operating within state went the opposite route and endorsed the proposed legislation.
The American Pharmacy Association urged people to contact their legislative representatives to express support for it.
“Out-of-control prescription prices affect every Alabamian, and we applaud Rep. Rigsby for introducing the FAIR Meds Act to help ensure patients across the state can afford their medications,” said APA CEO Louise Jones. “We ask all Alabamians to urge their representatives to pass this desperately needed legislation without delay.”
American Cooperative Pharmacy CEO Tim Hamrick said the legislation will help to expand health care access.
“The FAIR Meds Act will provide patients, employers, and Alabama pharmacies with transparency and increased access to health care,” said Hamrick. “We are proud to be working hand-in-hand with APA to provide a united voice in support for this legislation.”
In Tennessee, a similar law ensures patients have access to the pharmacy of their choice and pharmacies will receive adequate compensation for medication products and dispensing. The law is enforceable by the Tennessee Department of Commerce and Insurance.
Austen Shipley is a staff writer for Yellowhammer News.
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