On January 1, the Prescription Drug coverage offered state workers through the Louisiana Office of Group Benefits changed. Noe CVS Caremark will administer the program. That decision is upsetting to the largest pharmacies in the parish.
A group of Pharmacies and others went to court in late December to block the change. Their request for an injunction was dismissed by 19th District Court in Baton Rouge. The Judge ruled in favor of Commissioner of Administration Jay Dardenne’s petition for no cause of action. Other petitions were dismissed. As a result, the new contract with CVS Caremark went into effect January 1st.
Journal reporter LaBetha Casey discussed the effects of the program with North Desoto Drug in Stonewall.
For five years or more, Mandi Dominguez, owner of North DeSoto Drug in Stonewall, LA, has been communicating with legislators regarding pharmacy concerns. Recently, against legislative order, Jay Dardenne, who is the Commissioner of Administration for Gov. Jon Bel Edwards, entered into a contract with CVS Caremark to be the preffered pharmacy provider for state employees. Many pharmacies across the state of Louisiana, including North DeSoto Drug, had to opt out because the reimbursement is too low for them to be able to cover the cost of the medicine and fill the prescription, therefore they would be unable to break even on the transaction.
According to Dominguez, the Louisiana Independent Pharmacy Association has fought hard to stop this. She stated, “The pharmacies should be paid properly, and state employees should be able to use the pharmacy of their choice. When the state enters into contracts for other enterprises such as road construction, the state doesn’t pay less than what the contractor charges. This is a sad day for pharmacies and for the future of health care.” The main concerns Dominguez has now is for residents of Louisiana to have good access for healthcare, especially in rural areas, and that healthcare autonomy is gone.
North DeSoto Drug offers an independent discount plan, but Dominguez fears the healthcare of some of her state employee customers will suffer because of having to travel a longer distance to fill their prescriptions. She states that Louisiana has good laws on the books for healthcare, but that no one will take responsibility for enforcing them. When she speaks with legislators, they tell her that the State Attorney General should enforce them, the Attorney General says the Insurance Commissioner should enforce them and the Insurance Commissioner says the Attorney General should enforce them. However, she holds high regard for State Representative, Larry Bagley and State Senator Barry Milligan for fighting on the side of the local pharmacies.
LA State Rep. Larry Bagley stated, “There has never been a time in my 7-year time in office that all of the Democrats and Republicans in the legislature have unanimously voted against any measure every time until this issue arose.” The state senate is hosting a meeting in Baton Rouge later this month to discuss ideas of how to dismiss or counteract this contract. As Chairman of the Health and Welfare Committee, Bagley will be attending this meeting. However, since state contracts aren’t laws, the legislature has no say so about the contracts.
According to Bagley, the “big box stores” such as Walgreens, Walmart and similar stores that provide prescriptions will be able to continue being open to serve their customers because of the volume of sales but will run local pharmacies out of business.
The Journal spoke with Mansfield Drug in Mansfield about the impact on his business as a result pf the change. Owner and Pharmacist, Edmund Decote, says that if the State moves to one central Provider not only will it hurt the individuals on State Plans but, also, independent Drug Stores like his.
Ducote said a very important point is a person would lose the advantage of having all of your prescriptions with one pharmacist. He would know which drugs interact with the others. Another lost advantage is the relationship of the local Pharmacist with the area Doctors. Health Care Providers don’t have the services like home delivery and after hours service that independent pharmacies offer. Many prescriptions can be filled while a walk-in customer waits, and many questions can be answered with a phone call.
And in Logansport, reporter Nicole Tull spoke with Headrick’s Drug Store. They will not be affected very much by the state contract with CVS Caremark to be the sole pharmacy provider for state employees. Shomichael Stephens has been the pharmacist there since April. He said, “There are not very many customers on that plan. Only about thirty prescriptions fall into that category. Business will continue as normal.” Stephens is very compassionate for those affected and is grateful his pharmacy will not be impacted.
Stephens said he has been proactive about helping the small-town pharmacy since his arrival. He has welcomed a local author and chef to showcase his seasonings and cookbooks. Recently the pharmacy added a line of CBD products. Stephens encourages people to talk with their pharmacist when adding CBD to their regime as it may interfere with other medications.