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Pharmacy and Prescription Drugs Frequently Asked Questions

Question: Why is it important for rural people to have access to pharmacy services?

Answer: Pharmacists are part of the health care team and provide advice to patients, case management, and benefits management. Pharmacists have an important role in helping prevent medication errors and in identifying drug interactions. Pharmacy services include more than just supplying prescription drugs, a role that mail-order and Internet prescription drug suppliers can and increasingly do fill. Pharmaceutical care is an important aspect of the spectrum of health care.

The rural population tends to be older and have more chronic health conditions than the urban population, which makes access to pharmacy services particularly important to the health of rural residents. The rural elderly, who may have multiple prescriptions, can particularly benefit from a relationship with a pharmacist who, along with their physician, can help them manage their medications.

Pharmacists in rural communities may be one of only a few health care providers in a community, and because of this, play a larger role in educating and assisting patients.

Question: What financial challenges exist to maintaining rural pharmacy services?

Answer: Rural pharmacies typically pay more to drug manufacturers per prescription and sell a relatively low volume of medications, so the profit that results can be very low. There is increasing competition from mail-order and Internet suppliers, who are able to sell at large volume and negotiate lower prices from drug manufacturers, and may pass part of these savings on to customers. Some third-party payers (organizations that pay for health care for a beneficiary) have low payment rates for prescription drugs, so that pharmacies may actually lose money supplying the medications paid for by these programs. Independent pharmacies tend to be more dependent on revenue from prescription medication sales, making them more vulnerable to increased competition and to decreases in reimbursement. The financial pressures on rural pharmacies can lead to closure, which may leave a community many miles from the next pharmacy. For more information about the challenges facing rural pharmacies, please see Access to Pharmaceuticals and Pharmacy Services in Rural Areas, a chapter from the National Advisory Committee on Rural Health and Human Services' 2006 Report to the Secretary: Rural Health and Human Service Issues and the journal article, "The Economic Realities of Rural Pharmacy Practice" (Stratton TP. Journal of Rural Health. 2001 Spring;17(2):77-81.).

Question: Are there enough pharmacists available in rural America?

Answer: According to a 1999 study in the Journal of the American Pharmacy Association, the ratio of pharmacists to population is lower in rural areas, with only 66 pharmacists per 100,000 people, compared to 78 pharmacists per 100,000 nationwide. The Bureau of Health Professions report The Pharmacist Workforce: A Study of the Supply and Demand For Pharmacists states that the supply of pharmacists has not been adequate to keep up with increasing demand, leading to a nationwide shortage in pharmacists. According to a 2001 Journal of Rural Health article, "The Economic Realities of Rural Pharmacy Practice," rural pharmacists tend to work longer hours than their urban counterparts. Relief coverage for vacation and illness is often difficult for rural pharmacists to find, which can result in overwork or temporary pharmacy closings. This combination of lower wages and longer hours can make it more difficult for rural areas to recruit and retain pharmacists.

Question: What can communities do to ensure pharmacy access?

Answer: Communities may want to pursue the development of a locum tenens program through their state pharmacy board, college of pharmacy or state pharmacy association. A locum tenens program helps provide relief staffing by locum tenens (place holder) pharmacists, who are willing to substitute for other pharmacists on a temporary basis.

The use of telepharmacy, which employs technology to provide pharmacy services at a distance, can make pharmacy services available to a wider range of communities that could not support their own pharmacy. For more information on how to set up a telepharmacy program, please refer to chapter ten, Pharmacy, in A Guide to Getting Started in Telemedicine.

Health information technology (HIT) can also play a role in improving pharmacy services. Remote access pharmaceutical distribution networks have the potential to improve the quality of healthcare for rural populations without a local pharmacy. Computer tracking and automated dispensing of prescriptions could make medications less expensive and more readily available for rural patients. For more information on HIT, please see RAC's Health Information Technology guide.

Question: How do financial barriers limit access to prescription drugs?

Answer: The cost of prescription medications can be a barrier, particularly for the rural elderly and those without health insurance. Because older people tend to have higher numbers of prescriptions and live on a fixed income, paying for needed medications can be a problem. Medicare now includes an optional prescription drug benefit. For more information, please see the guide, Medicare Part D Prescription Drug Benefit.

Rural residents under age 65 are more likely to be uninsured than those living in urban areas, and those that do have health insurance are less likely to have prescription drug coverage. Rural areas also suffer from higher poverty rates. These factors combine to make it more difficult for rural residents to pay for prescription medications.

Question: What resources are available to help individuals pay for prescription drugs?

Answer: Several resources are available to identify programs that can help individuals pay for prescription drugs. Partnership for Prescription Assistance offers a database of over 150 prescription drug assistance programs available from pharmaceutical companies. The web site allows patients, caregivers or health care providers to search for specific medications and find matching assistance programs. The ASHP/PSSC (American Society of Health-System Pharmacists/Pharmacy Services Support Center) Patient Assistance Program (PAP) Resource Center lists state patient assistance programs and also links to more information about manufacturer-sponsored programs. Children may be eligible for health insurance, including prescription coverage, through the State Children's Health Insurance Program (SCHIP).

Question: What other barriers do rural residents face in obtaining prescription medications?

Answer: Limited access to transportation can make it difficult for rural residents to obtain needed medications. People may need to drive many miles to the nearest pharmacy, and pharmacy hours may be more limited in rural areas, requiring even those people in a town with a pharmacy to drive elsewhere in the evening or on weekends. Rural residents may face geographic barriers to reaching a pharmacy, such as mountains or rivers, and roads may sometimes be impassable due to weather or seasonal closure. Public transportation options are also more limited. Please see the Transportation information guide for more information on rural transportation issues.

Question: What is the 340B Drug Pricing Program and who benefits from this program?

Answer: The 340B Drug Pricing Program allows certain facilities, such as Federally Qualified Health Centers (FQHCs), FQHC Look-Alikes, and disproportionate share hospitals (DSH) that meets certain requirements, to purchase prescription and non-prescription medications at reduced cost. Participating facilities can use these savings to reduce the price of medications for patients, increase the number of indigent patients served, expand the number of drugs offered, and expand other services offered to patients. The 340B program is based on Section 340B of Public Law 102-585, the Veterans Health Care Act of 1992.

The 340B Prime Vendor Program negotiates pharmaceutical pricing below the 340B price and establishes distribution solutions and networks that improve access to affordable medications for participants of the 340B Drug Pricing Program. The program is free and voluntary to facilities that are already 340B eligible.

For more information about the 340B Drug Pricing program, please see the Health Resources and Services Administration's Introduction to 340B Drug Pricing Program. Additional assistance is available from the Pharmacy Services Support Center at 800-628-6297.

Credits

Thanks for contributions from: Michelle Casey, University of Minnesota Rural Health Research Center; Patricia Hill, North Dakota Pharmacists Association.
Past contributors: Craig Caplan, American Legacy Foundation; Dan Ermann and Cliff Binder, AARP Public Policy Institute

Sources: 2006 Report to the Secretary: Rural Health and Human Service Issues, National Advisory Committee on Rural Health and Human Services; Access to Rural Pharmacy Services in Minnesota, North Dakota, and South Dakota, University of Minnesota Rural Health Research Center; Knapp, KK, Paavola, FG, Maine LL, Sorofman, B & Politzer RM. Availability of primary care providers and pharmacists in the United States. Journal of the American Pharmacy Association. 1999 Mar-Apr;39(2):127-35.;Stratton TP. The economic realities of rural pharmacy practice. Journal of Rural Health. 2001 Spring;17(2):77-81.; Health Care in Rural America, Center for Rural America;The Pharmacist Workforce: A Study of the Supply and Demand For Pharmacists, Bureau of Health Professions; Prescription Drug Spending and Coverage Among Rural Medicare Beneficiaries in 2003, AARP; The Public Health Service (PHS) Section 340B Drug Pricing Program In Basic Language (Draft), HRSA Pharmacy Services Support Center; Uninsured in Rural America, Kaiser Family Foundation.

Maintained by: Alex McEllistrem-Evenson, alex@raconline.org

Last revised 11/18/2009