1 in 3 communities lack preferred Medicare pharmacies: 4 study notes

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About one-third of U.S. communities lacked a preferred pharmacy in Medicare Part D plans in 2024, with rural areas facing the greatest access gaps, according to a July 22 study published in The American Journal of Managed Care.

Researchers analyzed preferred pharmacy networks in Medicare Part D prescription drug plans and Medicare Advantage prescription drug plans from 2010 to 2024 and found 31.8% of ZIP Code Tabulation Areas lacked a preferred pharmacy within 5 miles in urban areas or 15 miles in rural areas.

Here are four things to know:

  1. Among communities with preferred pharmacies, the average additional travel distance versus a nonpreferred pharmacy was 0.64 miles in stand-alone Part D plans, while average savings totaled $5.09.
  1. Rural ZIP Code Tabulation Areas were associated with an additional 0.734 miles of travel in stand-alone Part D plans and 0.320 miles in Medicare Advantage plans after adjusting for socioeconomic factors.
  1. The largest access gaps were concentrated in the West North Central, Mountain and East South Central census divisions.
  1. Researchers said preferred pharmacy networks expanded between 2010 and 2024, particularly in Medicare Advantage plans, but geographic disparities in access persisted, especially in rural communities.

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