Merritt: Generics, Mail-Service Pharmacy and E-Prescribing Provide Real Savings 

(Washington, DC)-A new survey from the Commonwealth Fund comparing patients in the United States to those in seven other countries finds more than half of chronically ill patients did not get recommended care, fill prescriptions, or see a doctor when sick because of costs.  The survey underscores the importance for patients in exploring lower cost options, including generics, mail-service pharmacies, and electronic prescribing (e-prescribing), the Pharmaceutical Care Management Association (PCMA) said today.

“Consumers should explore available prescription drug cost-saving options, including generics and mail-service pharmacies,” said PCMA President and CEO Mark Merritt.  “Patients can save even more if they find a doctor who uses e-prescribing, which shows when more affordable options are available.”

PCMA believes policymakers should explore other cost-savings options, including:

• Accelerating adoption of waste-cutting health information technologies such as e-prescribing that alert patients and doctors alike when affordable choices are available
• Promoting comparative effectiveness programs which will improve clinical decision-making, enhance quality and discourage wasteful spending;
• Allowing greater use of mail service pharmacies in federal programs;
• Allowing generic competition for biologics and greater formulary competition in Part D; and
• Having CBO, OMB and others re-examine provisions in Medicare Part D that increase costs but don’t help beneficiaries.

The Commonwealth Fund surveyed 7,500 chronically ill patients in Australia, Canada, France, Germany, the Netherlands, New Zealand, the United Kingdom, and the United States.  Key findings included:

• More than half (54%) of chronically ill patients in the United States did not get recommended care, fill prescriptions, or see a doctor when sick because of costs, compared to 7 to 36 percent in other countries
• One-third of patients in the United States -more than in any other country-reported either being given the wrong medication or dosage, experiencing a medical error, receiving incorrect test results, or facing delays in hearing about abnormal test results.
• Nearly half (46%) of U.S. patients reported their time had been wasted because of poorly organized care or they had received care of little or no value during the past two years.  

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PCMA is the national association representing America’s pharmacy benefit managers (PBMs), which administer prescription drug plans for more than 210 million Americans with health coverage provided through Fortune 500 employers, health insurance plans, labor unions, and Medicare Part D.

(Washington, DC)-The Pharmaceutical Care Management Association (PCMA) released the following statement on the “Call to Action” white paper released today by Senate Finance Committee Chairman Max Baucus (D-Mont.) which outlines various policy options to reform and expand access to health benefits:

“We commend Senator Baucus for his ongoing determination to improve the quality, affordability and accessibility of American health care.  Senator Baucus is wise to focus on prevention, wellness and the unique needs of those with chronic conditions.  We look forward to working with him and others on bi-partisan initiatives that will improve quality, accountability and affordability.  These include:

• Promoting comparative effectiveness programs which will improve clinical decision-making, enhance quality and discourage wasteful spending;
• Accelerating adoption of waste-cutting health information technologies such as e-prescribing that alert patients and doctors alike when affordable choices are available;
• Allowing generic competition for biologics and greater formulary competition in Part D;
• Having CBO, OMB and others re-examine provisions in Medicare Part D that increase costs but don’t help beneficiaries; and
• Allowing greater use of mail service pharmacies in federal programs.

“If we do these things, health care reform can help finance itself and move beyond past debates which focused on simply shifting costs from one payer to another.” 

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PCMA is the national association representing America’s pharmacy benefit managers (PBMs), which administer prescription drug plans for more than 210 million Americans with health coverage provided through Fortune 500 employers, health insurance plans, labor unions, and Medicare Part D.

Savings Opportunities Available with Mail-Service Pharmacies,

E-Prescribing, Biogenerics, and Comparative Effectiveness 

(Washington, DC)-The Pharmaceutical Care Management Association (PCMA) released the following statement on preliminary presidential election exit polling:

“In yesterday’s historic election, two-thirds of voters said that reducing health care costs is a top concern.  Regarding prescription drugs, policymakers should address this challenge in two ways:  First, they should resist any new initiatives that will increase drug costs, and second, they should encourage more active use of tools that will actually generate savings.”

“Specifically, policymakers should:

• Create an FDA pathway to approve generic biologic alternatives;
• Encourage faster adoption of e-prescribing among America’s physicians. E-prescribing is as a major first step in the drive for health IT reform;
• Create new ways for America’s payers to compare the clinical effectiveness and costs of “me-too” prescription drugs; and
• Encourage greater use of mail service pharmacies in public programs.”

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PCMA is the national association representing America’s pharmacy benefit managers (PBMs), which administer prescription drug plans for more than 210 million Americans with health coverage provided through Fortune 500 employers, health insurance plans, labor unions, and Medicare Part D.

New ‘Collective Bargaining’ Rights Would Empower them to Raise Costs Even More

(Washington, DC)- Reuters Health reports that a new study finds that independent drugstores in the state of Florida charged an average of 15 percent more for four widely used prescription drugs than the statewide average according to data examined on the web site MyFloridarx.com.  Florida pharmacies that fill prescriptions for Medicaid patients are required by law to post their prices for the 100 most commonly used medications on the web site, according to Reuters.

“With independent drugstores charging 15 percent more than other pharmacies, they shouldn’t be granted new collective bargaining rights which would empower them to charge consumers even more,” said Pharmaceutical Care Management Association (PCMA) President and CEO Mark Merritt.

CBO: Collective Bargaining Would Increase Costs

Recently, the Congressional Budget Office (CBO) found that HR 971 would increase federal costs by $640 million over ten years and that increased drug costs to private health plans, employers, and consumers would result in “reductions in the scope or generosity of health insurance benefits, such as increased deductibles or higher copayments.”  CBO’s analysis also contends that cost increases resulting from the legislation would be passed along to workers, reducing “both their taxable compensation and other fringe benefits.

FTC: Collective Bargaining a “Costly Step Backward”

Furthermore, during testimony on HR 971 before the House Judiciary Committee Antitrust Task Force, the Federal Trade Commission (FTC) stated: “Giving heath care providers . . . a license to engage in price fixing and boycotts in order to extract higher payments from third-party payers would be a costly step backward, not forward, on the path to a better health care system.”

The research reported on by Reuters Health builds on a growing body of evidence on the financial health of pharmacies, including:

Independent Pharmacists’ Average Salary: $109,618

• The recently released 2008 National Community Pharmacists Association (NCPA) Digest reported that profits and salaries are increasing at independent drugstores.
• A 2008 survey from Drug Topics magazine found that pharmacists who practice at independent pharmacies earned an annual base salary of $109,618.  The overall survey of pharmacists found that 84 percent received a salary increase in 2007.  This corresponds with a new survey from Mercer that found “the ongoing shortage of pharmacy professionals continues to drive up pay.”
• In 2006, Money magazine and Salary.com released their annual list of Best Jobs in America and ranked pharmacists in the top ten.  In addition, it noted that “demand for pharmacists is exploding as the population ages and new medications are developed.

Bargaining Tools Already Available to Independent Drugstores

Independent pharmacies currently enjoy numerous bargaining tools to gain market power in government and commercial programs, including:

• Independent pharmacies often participate in joint purchasing groups that allow them to lower costs and compete more effectively.
• Both Medicare and private insurers require geographic pharmacy network access standards for their enrollees that already provide pharmacies-particularly rural pharmacies-extensive negotiating power with pharmacy benefit managers (PBMs). 
• All health care providers, including pharmacies, can form joint ventures with other pharmacies to provide quality and clinical services and negotiate the fees for those services.

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PCMA is the national association representing America’s pharmacy benefit managers (PBMs), which administer prescription drug plans for more than 210 million Americans with health coverage provided through Fortune 500 employers, health insurance plans, labor unions, and Medicare Part D.