Local pharmacies are feeling the pinch, independent shops say state law isn’t working
CHAFFEE COUNTY, Colo. (KRDO) - Independently owned pharmacies thought this new law would save their business.
The 'Preserving Access to Rural Independent Pharmacies' bill, HB25-122, promised to save small independent pharmacies.
HB25-122, signed into law on May 27, 2025, was designed to address issues with Pharmacy Benefit Managers, known as PBMs, reimbursing pharmacies below the cost of medications. The law requires cost-based reimbursement, ensuring pharmacies are paid the cost of the medication plus a $14.14 dispensing fee. This reimbursement model aligns with Colorado Medicaid standards.
For example, if a drug costs $100, the pharmacy would get reimbursed $100 plus the dispensing fee.
"I was there when he actually signed the bill, and I was excited," Lucas Smith told KRDO13. Smith owns two pharmacies that qualify as both rural and independent: the Buena Vista Drug and Salida Pharmacy & Fountain.
"In a lot of rural areas, independent pharmacies are all that's there, and we're all struggling. And this bill provided help. We just really need it to be enforced," Smith said.
Smith said he tried telling the PBMs about the new law and requirement for reimbursements. "Somehow they're saying that their plans don't apply, that they don't meet the regulations for the law," Smith said.
Not only does it impact Smith and other pharmacies' bottom lines, but it also impacts the rural communities that rely on his service.
"It's still struggling and is challenging to [stay] open. Reducing hours, not being open as long on Saturdays, not being able to hire another pharmacist so we can add more services," Smith said.
KRDO13 reached out to the Colorado Division of Insurance, which Smith says he has reported the non-compliance to many times, to find out what they are doing to make sure this law is followed.
As of 10:00 p.m. on Tuesday, we have not heard back.
Stay up to date with the latest local news, sports, and investigations by downloading the KRDO13 app. Click here to download it from the Apple App Store. Android users can download it from Google Play here.
