Privatized Health Insurance Killing Kentucky's Small Pharmacies

Privatizing public services always - ALWAYS - costs more for worse service. And in Kentucky it's destroying jobs by killing small businesses.

From the Courier:

Kentucky legislators are threatening to subpoena three managed care companies after the state’s 550 small pharmacies complained that they’re being pushed out of business by the companies’ low Medicaid reimbursements.

Sen. Jimmy Higdon, a Lebanon Republican and co-chairman of the House-Senate Program Review Committee, said the panel has sent letters inviting officials from three managed care companies to appear at a meeting Feb. 13 to answer questions. If the committee doesn’t get the information it wants, it is prepared to subpoena the companies to get it, he said.

“This is a drastic measure (issuing subpoenas), but they are putting our independent pharmacists out of business,” Higdon said. “You can’t sell things for less than they cost and stay in business.”

SNIP

The situation is bad enough that the Kentucky Medical Association says some doctors have discussed taking out short-term loans to offset delays in claims reimbursement from the companies.

Independent pharmacists have been among the most vocal critics because of the complicated pricing formula the managed care industry uses to pay for prescription drugs.

“This has hurt a lot of Main Street pharmacies,” said Rosemary Smith, who operates eight Eastern Kentucky pharmacies with her husband, Luther. “We are the fabric of the economy in these small communities, and they are killing us.”

The managed care system was implemented Nov. 1 by Gov. Steve Beshear‘s administration as a cost-saving measure.

Three months later it's a massive failure on all counts, as was completely predictable at the time.