Closures signal ills for Michigan's independent pharmacies
HAZEL PARK — One recent day, Matt Marinco filled a prescription for a patient's diabetes medication and lost nearly $133 on the transaction. The two-month supply cost the pharmacy $1,933.32, but insurance reimbursement totaled just $1,800.40. “Those losses are unsustainable,” said Marinco, pharmacist in charge at his family's Marinco Pharmacy, which has served Hazel Park for more than 80 years. Some pharmacists say the reimbursement issue has forced them out of business. Six independent pharmacies closed in Michigan in October, including four HomeTown Pharmacy locations and Fred's Pharmacies in Three Rivers and Vicksburg. HomeTown Pharmacy cited financial strain caused by pharmacy benefit managers' reimbursement practices as the main reason for the closure of an outlet near Muskegon and three in the Traverse City area. The closures are part of a broader trend. About 275 pharmacies closed statewide in 2024, including 91 independent outlets, according to the Michigan Pharmacists Association. Independent pharmacies across Michigan are facing mounting financial pressures, with owners saying PBM policies are making it increasingly difficult to stay afloat. Meanwhile, the PBM industry disputes that it is driving closures, saying pharmacies have ways to manage costs. At the same time, pharmacies are looking for ways to strengthen their
