Navigation Links
Independent Drugstore Lobby Wants Sweeping Antitrust Exemptions to Charge Higher Prescription Drug Prices

WASHINGTON, March 15, 2013 /PRNewswire-USNewswire/ -- The independent drugstore lobby is again seeking special antitrust exemptions (HR 1188) that would empower independent drugstores to charge consumers, employers, unions, and government agencies higher prescription drug prices, the Pharmaceutical Care Management Association (PCMA) said today.  

A recent Government Accountability Office (GAO) report found that nearly 80 percent of independent drugstores already hire powerful Pharmacy Service Administrative Organizations (PSAOs) to negotiate their contract terms, negating any need for sweeping changes to antitrust laws.

"Prescription drug prices for employers, unions, government agencies, and consumers will skyrocket if competing independent drugstores are given a license to collude," said PCMA President and CEO Mark Merritt . "Prospects for this bill won't be helped by the GAO's recent finding that independent drugstores already hire large and powerful PSAOs to collectively bargain for higher payments."

According to the GAO report:

  • Three of the five largest PSAOs are run by the country's largest wholesalers, AmerisourceBergen Corp., Cardinal Health Inc., and McKesson.
  • PSAOs routinely provide contract negotiation and are authorized to negotiate and enter into contracts with PBMs and third-party payers. The contract provisions that PSAOs negotiate include reimbursement rates, payment terms and audits of pharmacies.
  • PSAOs provide drugstores with a range of services, such as payment reconciliation and back-office functions, to improve the efficiency of their businesses.
  • Rural drugstores can more effectively negotiate contract terms than a drugstore operating in an urban area with many competitors.

CBO: Collective Bargaining Would Increase Costs to the Federal Government

  • The Congressional Budget Office (CBO) has found that special antitrust protections for independent pharmacists would increase costs to the federal government 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 would be passed along to workers, reducing "both their taxable compensation and other fringe benefits."

FTC: Collective Bargaining a "Costly Step Backward"

  • During testimony before the House Judiciary Committee Antitrust Task Force, the Federal Trade Commission (FTC) called pharmacy antitrust exemptions a "costly step backward" noting that such exemptions "would allow pharmacies to engage in collective bargaining to secure higher fees" and would "increase costs to private employers who provide health care insurance… without any assurance of higher quality care."

CRA Study:  H.R. 1946 Would Increase Costs by Up to $15.6 billion

  • Similar legislation introduced in the last Congress (HR 1946) would raise prescription drug costs for payers and consumers by up to $15.6 billion, according to research conducted by Charles Rivers Associates (CRA).

PCMA represents the nation's pharmacy benefit managers (PBMs), which improve affordability and quality of care through the use of electronic prescribing (e-prescribing), generic alternatives, mail-service pharmacies, and other innovative tools for 215 million Americans.

Follow PCMA on Twitter

SOURCE Pharmaceutical Care Management Association
Copyright©2012 PR Newswire.
All rights reserved

Related medicine technology :

1. Winner Medicals Special Committee Appoints Independent Financial Advisor and Retains Legal Counsel
2. EnerJel™ Adds 200 Independent Pharmacies To Distribution Base
3. Allscripts Adds Two Independent Directors to Board
4. American Oriental Bioengineering Announces Change of Independent Auditors
5. Cardinal Health Celebrates Community Pharmacists Commitment to Patient Care at Annual Trade Show for Independent Pharmacies
6. Cardinal Health Highlights Independent Pharmacy Best Practices At Retail Business Conference 2012
7. ShangPharma Independent Committee Appoints Chairman and Legal Counsel
8. Pulse Oximetry Screening Hailed as the New Milestone to Combat Critical Congenital Heart Disease - Signal Extraction Technology Leading the Way in Large, Independent Clinical Studies
9. BioDrain Medical Inc. Signs Additional Independent Distribution Agreements, Strengthening Nationwide Presence
10. Independa, IDEAL LIFE to Provide Plug-and-Play Health Monitoring for Independent Elderly and Their Caregivers
11. ShangPharma Independent Committee Appoints Financial Advisor
Post Your Comments:
(Date:11/27/2015)... DUBLIN , Nov. 27, 2015 Research ... of the "Global Intrauterine Devices Market 2015-2019" ... --> In this report, the author ... intrauterine devices market for 2015-2019. To calculate the market ... of following type of products: Hormonal IUDs and copper ...
(Date:11/26/2015)... 26, 2015 --> ... approach blends immunotherapy with Bremachlorin-photodynamic therapy for advanced cancer. ... blends immunotherapy with Bremachlorin-photodynamic therapy for advanced cancer. ... blends immunotherapy with Bremachlorin-photodynamic therapy for advanced cancer. ... found that immunotherapy can be efficiently combined with photodynamic ...
(Date:11/26/2015)... DUBLIN , Nov. 26, 2015 ... the addition of the "2016 Future Horizons ... Monitoring (TDM) Market: Supplier Shares, Country Segment Forecasts, ... offering. --> ... comprehensive analysis of the Japanese therapeutic drug monitoring ...
Breaking Medicine Technology:
(Date:11/27/2015)... , ... November 27, 2015 , ... ProSidebar: Fashion ... Final Cut Pro X. With ProSidebar: Fasion, video editors can easily add an ... as a minimalist title opener. Utilize presets featuring self-animating drop zones, lines, bars, ...
(Date:11/27/2015)... ... November 27, 2015 , ... Intellitec Solutions announced today ... Group (MSDSLUG). Recognized as Microsoft’s official group for end users of Dynamics SL ... users, partners, industry experts and representatives. Intellitec Solutions’ membership status demonstrates their ongoing ...
(Date:11/27/2015)... Karnataka (PRWEB) , ... November 27, 2015 , ... ... world, Health-E-minds, an innovative online platform for mental health and wellness consultation, has ... , This partnership will bridge the knowledge gap experienced by parents and bring ...
(Date:11/27/2015)... ... 27, 2015 , ... Dr. Thomas Dunlap and Dr. Patrick ... Bierbaum with Emergency Medicine at St., Joseph Health System’s Santa Rosa Memorial Hospital ... present in similar ways and require time-critical intervention to avoid large area heart damage ...
(Date:11/26/2015)... ... November 26, 2015 , ... Patients at Serenity Point Recovery, ... together on Thanksgiving Day to share the things that they are most grateful ... Point YouTube channel, patients displayed what they wrote on index cards, describing the ...
Breaking Medicine News(10 mins):