Huhn RX Drug closes its doors; Closure is latest part of national crises

Hundreds of Bay Area residents will have to go somewhere else to get their prescriptions filled after a local drug store closed its doors.

Co-owner Ron Schmidt took over ownership of the Ashland staple Huhn Rx Drug in 2010, maintaining a tradition of operating a drug store at 522 Main St. W. in Ashland that he said dates back over 100 years.

Over the years, Schmidt said “it has been a pleasure serving people in the Ashland community.” But over the past several months, he said insurance companies have provided lower and lower reimbursements for prescriptions, forcing him to make a tough decision. With no other choice, Huhn has agreed to sell its client files to Walgreens. Schmidt said Huhn has between 500-1,000 clients scattered around the Bay Area. Several Huhn staff members will also transfer to Walgreens as part of the agreement. He hopes they continue to do great work at their new place of work and serve the community well.

Huhn is not alone. Nearly a third of independent pharmacies are at risk of going out of business because of these lower reimbursements, according to the National Community Pharmacists Association, a trade group that represents more than 19,400 US pharmacies, including Huhn.

Thousands of stores across the country have been forced to close. It’s not just small town drug stores that are taking a hit. Last year Rite Aid filed for bankruptcy and closed hundreds of stores.

“This is an emergency. And if Congress fails to act again, thousands of local pharmacies could be closed within months and millions of patients could be stranded without a pharmacy, said NCPA CEO B. Douglas Hoey in a news release earlier this year.

The NCPA surveyed 10,000 independent pharmacy owners and managers about the CMS rule in February, and of the 815 respondents, 32% said they’re considering closing down this year due to the financial constraints. Additionally, 93% said they’d consider dropping out of Medicare Part D next year, and 99% said their prescription reimbursements have decreased since the rule went into effect.

If a third of all community pharmacies close, and if more than 90 percent stop accepting Medicare Part D, it will be a catastrophe for seniors, a hardship for most other patients, and a “devastating blow” to the overall health care system, Hoey said in the release.

“This demands immediate action by Congress and the administration,” he said.

Requests for comment from Walgreens were not immediately returned.