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A report jointly issued by the National Association of Chain Drug Stores (NACDS) and the Food Marketing Institute (FMI) says that "an economic impact study of the Deficit Reduction Act (DRA) of 2005 finds that 11,105 pharmacies across the country could close due to reductions in the Medicaid reimbursement rate, well below their cost to fill prescriptions. These pharmacies generate more than 300,000 jobs and $31.1 billion throughout the nation’s economy."

And, the report says, "To the extent that pharmacy closures simply redirect patients to other pharmacies, the net impacts would be smaller. However, this offers little hope to pharmacies in rural areas and urban neighborhoods with large Medicaid populations since these areas would be unlikely to sustain their businesses and maintain pharmacy access. The loss of pharmacies for these Medicaid participants would adversely affect their health, according to NACDS and FMI."

KC's View:
In this case, I'm going to turn the space over to MNB user Jerry Sheldon, who responded to this report by sending me the following email, suggesting that maybe concerns are misplaced:

"NACDS and FMI need to do a study on how many chain drug stores Wal-Mart is going to close, because they have the potential to close more pharmacies that Medicaid. From a perfect example, we're not big fans of Wal-Mart, but I'm starting to change my feel and I wouldn't mind shopping at them now due to their new prescription program. I take Fosamax for osteoporosis. It used to cost $70 a month for the branded version. I can now get a three-month supply of the generic for $24 dollars. Sign me up. My wife goes to drop off the prescription, during the middle of the day and talks about the line being 15 deep for pick up after lunch. CVS and Walgreens better bring their A-game because someone else has theirs on. Wal-Mart's not bemoaning Medicare, they're doing something about high drug prices and consumers are responding."