New Alabama Law Affecting Independent Pharmacies Goes Into Effect

A new Alabama law will benefit independently owned pharmacies, but will it end up costing patients more money to fill prescriptions?

Senate Bill 252

The Alabama Community Pharmacy Relief Act (S.B. 252) was signed into law in April 2025 and became effective on October 1, 2025. Before the Act took effect, pharmacy benefit managers (PBMs) would typically reimburse independent pharmacies at a lower rate than Medicaid, resulting financial losses when filling some prescriptions. For years, PBMs have been paying independent pharmacies less than the cost to dispense drugs, making it difficult for community pharmacies to survive. The Act aims to help independent pharmacies by requiring PBMs to reimburse at the same rate as Medicaid—generally a $10.64 dispensing fee per prescription.

The purposes of the Act include increasing transparency and accountability within the PBM system, ensuring financial stability for independent community pharmacies, and preserving patients’ access to affordable, local medication services.

The Act was sponsored by Senator Billy Beasley, a retired pharmacist, and carried in the House by Representative Philip Rigsby, an independent pharmacist. “It’s a big win for not only pharmacies that are able to stay open and take care of those patients, but a big win for Alabamians because they can continue to go to that pharmacy that’s taken care of generations,” said Rigsby in a statement.

Impact of the Bill

While the Act will certainly benefit independent pharmacies, its impact on patients remains less clear. Representative Rigsby has specified that PBMs, rather than patients, who should absorb the costs. “I want to be clear that under the Community Pharmacy Relief Act, patients cannot be charged more based on the new payment model. Patients should not see any increase in their out-of-pocket costs,” said Rigsby.

However, in a press release, BlueCross BlueShield of Alabama noted that, “On October 1, 2025, customers may see changes to the amount they owe when picking up prescriptions at a community pharmacy in Alabama.” The organization noted that customers will not pay more than their designated copay; however, they still may be paying more overall for the prescription. As an example, BlueCross BlueShield noted that prior to the Act taking effect, a $3 medication would have cost $3.05 including the dispensing fee. After October 1, the medication would cost $3 plus a $10.64 dispensing fee—a total of $13.64. While that number is still under the $15 copay in the example, it is $10 more than the original price. In cases where the drug cost and dispensing fee are over the patient’s copay, they would only pay the copay.

Bottom Line

The Act could result in price increases for some patients filling prescriptions for inexpensive medications. However, it will not affect medications that cost more than the patient’s copay. The Act will provide stability for the state’s independent pharmacies and maintain patients’ access to local pharmacy services.

Reference

Governor Ivey signs the Community Pharmacy Relief Act into law. Press release. Alabama Pharmacy Association. Published April 15, 2025. Accessed October 22, 2025. https://www.aparx.org/news/698631/Governor-Ivey-Signs-the-Community-Pharmacy-Relief-Act-Into-Law.htm

Alabama Community Pharmacy Relief Act. BlueCross BlueShield of Alabama. Published October 1, 2025. Accessed October 22, 2025. https://www.bcbsal.org/web/alabama-community-pharmacy-relief-act

Bill AL SB252. Bill Track 50. Published April 15, 2025. Accessed October 22, 2025. https://www.billtrack50.com/billdetail/1872539