CLARE, MI — Local pharmacy owners gathered at Gateway Pharmacy in Clare on May 4 to confront a growing crisis threatening the survival of independent drugstores across Michigan.
The roundtable event, hosted in partnership with American Pharmacies, brought together pharmacy leaders and State Rep. Tom Kunse (R-Clare) to discuss the "pharmacy closure crisis" that is rapidly hollowing out healthcare access in rural and underserved communities.
The PBM "Squeeze"
The primary focus of the discussion was the role of Pharmacy Benefit Managers (PBMs). These insurance middlemen control medication costs and dictate where patients can fill their prescriptions. According to owners at the table, PBM reimbursement rates have plummeted to the point where pharmacies are frequently forced to sell life-saving medications at a financial loss.
"Without meaningful reform of PBMs, closures will continue," organizers warned.
Of the 272 pharmacies that closed in Michigan in 2024, 91 were independent. For small towns, these losses create "pharmacy deserts," forcing seniors and patients with chronic conditions to travel long distances or rely on mail-order services that lack personalized oversight.
More Than Just a Prescription
Independent pharmacies represent about 35% of the U.S. retail pharmacy footprint. For owners like John Gross of J Gross Pharmacy Group and Greg McCarthy of Downtown Drugs, the value of their business goes beyond the bottle.
"We take time to listen, explain side effects, and help patients navigate a complex health care system," Gross noted during the session, emphasizing that their teams provide "trusted, in-person care" that mail-order giants cannot replicate.
Seeking Legislative Solutions
The roundtable served as a direct briefing for Rep. Kunse, following three hearings held in March by the Michigan House Public Health and Food Security Subcommittee.
Miguel Rodriguez, EVP and General Counsel for American Pharmacies, joined local owners to emphasize the urgency of the situation. Participants included owners from Gateway Pharmacy, J Gross Pharmacy Group, Downtown Drugs and Ambulatory Infusion Care, Mission Pharmacy, and Countryside Pharmacy—covering a broad footprint of seventeen independent pharmacies throughout central Michigan.
Monday’s meeting in Clare was the first in a planned series of roundtables across the state intended to keep PBM reform at the forefront of the legislative agenda.
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