Medicare Reimbursement Changes Threaten Long-Term Care Pharmacies in Arizona

Proposed changes to Medicare Part D reimbursement rates threaten the viability of long-term care (LTC) pharmacies in Arizona, potentially leading to closures of up to 60% of these essential providers. LTC pharmacies are critical in managing complex medication regimens for elderly residents in nursing homes and assisted living facilities, especially in rural areas where distances and access challenges are significant. The reimbursement adjustments could undermine the ability of these pharmacies to continue providing federally mandated pharmaceutical support, risking continuity of care for nearly 92,000 Medicare beneficiaries in Arizona alone. The distressed LTC pharmacy sector reflects broader challenges in healthcare access for vulnerable populations, highlighting gaps in funding models for specialized pharmacy services that require extensive medication management and packaging. Stakeholders are urging emergency administrative action—such as demonstration projects or waivers under the current federal statutory authority—to provide immediate relief and prevent widespread closures while sustainable policies are developed. Legislative solutions are also being pursued, including the bipartisan Preserving Patient Access to Long-Term Care Pharmacies Act (H.R. 5031), which proposes establishing a temporary supply fee per prescription to stabilize LTC pharmacies financially during this transitional period. The advocacy emphasizes the role of LTC pharmacies as fundamental healthcare infrastructure for the elderly, particularly in geographically dispersed communities where alternative pharmacy options are scarce. The issue illustrates the complexity of balancing federal reimbursement policies with the operational realities of pharmacies serving high-need patient populations. It also underscores the importance of coordinated efforts between government agencies, healthcare providers, and policymakers to ensure access and continuity of care for aging populations requiring long-term medication support. The situation in Arizona serves as a case study reflecting national trends and the urgent need for adaptive healthcare policy responses addressing LTC pharmacy sustainability.