NCPA urges careful consideration of pharma tariffs to prevent shortages and cost increases

 B. Douglas Hoey CEO
B. Douglas Hoey CEO | National Community Pharmacists Association

The National Community Pharmacists Association (NCPA) has expressed concerns regarding potential tariffs on the pharmaceutical sector. While supporting the goal of boosting domestic pharmaceutical manufacturing, the NCPA cautions against measures that could negatively impact patients and independent pharmacies.

In a statement to the Department of Commerce, the NCPA highlighted worries that tariffs might lead to drug shortages and increase costs for community and long-term care pharmacies. The association pointed out that drug wholesalers would likely pass any price increases caused by tariffs onto pharmacies. Steve Postal, JD, NCPA's senior director of policy and regulatory affairs, noted that "pharmacies are unable to pass these increased costs to patients," as pharmacy benefit managers (PBMs) control patient out-of-pocket expenses and determine pharmacy reimbursements.

Postal emphasized the need for PBMs to adjust reimbursements promptly if tariffs are implemented. He stated it is crucial for PBMs to update pharmacy reimbursements within 24 hours of any price hikes due to tariffs.

The NCPA is advocating for specific exclusions from potential tariffs, promoting U.S. manufacturing through supportive policies, and reforming the PBM payment model. These steps aim to strengthen domestic supply chains and ensure fair reimbursement for pharmacies.

B. Douglas Hoey, CEO of NCPA, warned about national security risks associated with dependence on foreign sources for prescription drug ingredients. He stated that without adjustments in PBM reimbursements reflecting higher costs due to tariffs, there could be fewer pharmacies available, leaving patients without adequate access.

Founded in 1898, the NCPA represents over 18,900 community pharmacies across the United States, employing more than 205,000 individuals. The organization emphasizes its role as a key advocate for accessible healthcare providers rooted in local communities.