Navigation Links
Independent Drugstore Lobby Wants Sweeping Antitrust Exemptions to Charge Higher Prescription Drug Prices
Date:3/15/2013

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:
*Name:
*Comment:
*Email:
(Date:2/10/2016)... ALSP, Inc. announced that it has appointed Col.(Retired) ... Affairs in preparation for its move into clinical trials with ... stated, "We are pleased to welcome Dallas Hack ... an individual of such practical knowledge and far-reaching experience in ... on his broad experience and success as a clinician and ...
(Date:2/10/2016)... 2016 Intouch Solutions, a leading marketing agency ... trend regarding the evolution of digital sales aids ... deliver compelling sales presentations via tablets. After conducting ... 2015, Intouch uncovered that while most pharmaceutical representatives ... many are not using them effectively during physician ...
(Date:2/10/2016)... -- Until recently, the options for reducing the appearance of ... approved the non-invasive Coolsculpting treatment, which removes fat cells ... in 2010 for the abdomen and this approval was ... this add-on approval, the experts at Laser Therapy Health ... CoolMini, to address smaller areas of fat. ...
Breaking Medicine Technology:
(Date:2/10/2016)... ... February 10, 2016 , ... ... Jacksonville, FL 32224, February 26th: Amateur & Professional Divisions - Time: 7:00pm ... 7:00pm – 10:00pm | Ticket Prices $30, Social Media: http://www.USPoleSportsFed.org , ...
(Date:2/10/2016)... (PRWEB) , ... February 10, 2016 , ... Workrite Ergonomics, ... company that has evolved from humble beginnings to being an internationally recognized leader in ... that we are today”, said Charlie Lawrence, President of Workrite. “Workrite recognized the ...
(Date:2/10/2016)... ... 2016 , ... Anxiety of older Americans over steep cost increases of prescription ... decade ago, according to The Senior Citizens League (TSCL). Since last ... with rapidly rising costs. “The implications are chilling, particularly for people with chronic ...
(Date:2/10/2016)... Puente, California (PRWEB) , ... February 09, 2016 ... ... Medicine students, faculty and staff helped give free oral screenings to 150 children ... Feb. 5, 2016. , The College of Dental Medicine joined Chinese American Dental ...
(Date:2/10/2016)... Angeles, CA (PRWEB) , ... February 09, 2016 , ... ... surgeons are witnessing a dramatic increase in the number of patients under the age ... reflects what they are seeing in their offices, and may indicate an overall shift ...
Breaking Medicine News(10 mins):