Navigation Links
Long Term Care Pharmacy Alliance Concerned with Proposed CMS Rule; New Study Confirms LTCPA Position

WASHINGTON, Jan. 12, 2011 /PRNewswire-USNewswire/ -- The Long Term Care Pharmacy Alliance (LTCPA) expressed concern with CMS's proposed rule on short-cycle dispensing within the long-term care (LTC) setting.  In comments submitted to CMS Tuesday, LTCPA explained that any cost savings generated by implementing a short-cycle, 7-day fill dispensing regimen, would be overwhelmingly eliminated by additional dispensing fees resulting from the quadrupling the number of dispenses needed to move from 30-day to 7-day cycles.

A study conducted by Managed Solutions, LLC and released today supports this conclusion and finds that moving all Medicare Part D prescriptions to a 7-day fill would result in increased costs to Part D payers of over $800 million annually.  Even moving more expensive brand products to a 7-day fill would still increase costs to Part D payers of $154 million annually.  

"While LTCPA supports the goal of reducing waste, we also recognize the need to consider all costs associated with the proposed rule, so that unintended consequences do not result from the application of the rule.  Given that it's the American taxpayer ultimately shouldering the burden of paying for this statute, it is critical that calculations such as those provided in our study be factored into the drafting of regulations," stated Bill Daniel, Executive Director for LTCPA.

The study derived its analysis from information received from eight LTC pharmacies. The findings estimated the amount of unconsumed medication among Medicare Part D residents in skilled nursing facilities and the potential cost reductions that could be achieved through shorter fill times.

In addition to the increased cost to payers, other key findings included:

  • "Wasteful dispensing" to nursing home residents covered by Medicare Part D, only amounts to approximately 2.9% of total dispensed value.  Short cycling this percentage of waste would save only $125 million annually and cost over $900 million in additional dispensing fees.  This is in stark contrast to the $712.5 million in annual savings estimated by the Congressional Budget Office in their scoring of the short-cycling provision.
  • The tradeoff between reduced waste associated with unused medication and increased pharmacy operating costs due to more frequent medication dispensing only becomes favorable to the taxpayer for prescriptions with original dispensed value of over $400.

In its comments, LTCPA stated that CMS's approach on short-cycle dispensing is contrary to Congress' intent that Section 3310 of the Patient Protection and Affordable Care Act result in savings to Medicare Part D. "We believe that it was Congress' intent to decrease costs associated with unused medications for Part D residents in LTC facilities.  Implementing short cycle dispensing for long term care patients with an average length of stay of 835 days who are primarily taking maintenance medications does not meet this financial goal. While we applaud CMS's initial proposal to short cycle traditionally more expensive brand products, we believe that this limitation isn't narrow enough. Our data clearly shows that there is a prescription value threshold of $400 that must be met in order to achieve any cost savings," continued Bill Daniel.

In the proposed regulations, CMS calls for data collection by Part D plans in order to study the efficiencies of various dispensing methodologies and to estimate the cost of unused drugs and possible savings.  As CMS has identified their lack of data on unused Part D drugs in this population, LTCPA recommends that before drafting any final regulations CMS conduct a study to determine the causes, frequency and cost of unused medications and also consider alternatives to 7-day dispensing cycles.

To read LTCPA's full comments or to view the study, click here.

The Long Term Care Pharmacy Alliance (LTCPA) advocates for the interests of the long term care (LTC) pharmacy community - a community that provides a critical component to the daily care of individuals living in LTC settings. LTCPA provides a national, unified voice on major issues including LTC pharmacy costs, specialized nursing facility pharmacy services and the Medicare Part D prescription drug benefit.  LTCPA membership is comprised of three national LTC pharmacy providers, Managed Health Care Associates (MHA), Omnicare and PharMerica that together serve 1.8 million Medicare Part D beneficiaries, or ninety percent of all LTC facility residents.

SOURCE Long Term Care Pharmacy Alliance
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. CVS/pharmacy Offers Flu Vaccinations in Over 4,000 Stores
2. Genzyme Corporation Selects Diplomat Specialty Pharmacy for 2008 Renagel Medicare Part D Assistance Program
3. Pharmacyclics Announces Data and Publication Characterizing Highly-Selective HDAC Inhibitor
4. Pharmacyclics Announces Preclinical Results Supporting Development of Its Novel Btk Inhibitor in Immune Mediated Diseases
5. Pharmacyclics Reports Multiple Presentations at AACR on Its HDAC and Selective HDAC Inhibitors
6. Pharmacyclics Novel Factor VIIa Inhibitor Demonstrates Potential Inhibition of Tumor Growth in Multiple Types of Cancer
8. Diplomat Specialty Pharmacy Develops and Launches Best-In-Class Electronic Navigator (eNAV(TM)) Patient Care System
9. Pharmacyclics Novel Btk Inhibitor Shows Efficacy in Preclinical Models of Rheumatoid Arthritis and Lymphoma
10. Cardinal Health Expands PET Nuclear Pharmacy Services to Support Clinical Drug Trials
11. McGraw-Hill Professional Launches Drug Effectiveness Resource on AccessPharmacy
Post Your Comments:
(Date:11/25/2015)... N.C. , Nov. 25, 2015 ... the planned investment of at least $15.8  Million ... Wilmington, NC . The expansion ... capacity to meet the growing demands of the ... site expansion will provide up to ...
(Date:11/25/2015)... , Nov. 25, 2015  Henry Schein, Inc., the ... to office-based dental, medical and animal health practitioners, will ... the Henry Schein ConnectDental® Pavilion , which brings ... of open solutions designed to help any practice or ... here for a schedule of experts appearing at ...
(Date:11/25/2015)... 25, 2015  Trovagene, Inc. (NASDAQ: TROV ), ... Chief Executive Officer Antonius Schuh, Ph.D., is scheduled to ... Annual Piper Jaffray Healthcare Conference. th ... Palace Hotel in New York ... Mr. Schuh will be available for one-on-one meetings during ...
Breaking Medicine Technology:
(Date:11/27/2015)... Angeles, CA (PRWEB) , ... November 27, 2015 , ... ... conversation at the recent 2015 American Dental Association meeting in Washington D.C. revolved around ... help protect a patient’s overall health. The talk stressed the link between periodontal disease ...
(Date:11/27/2015)... ... 27, 2015 , ... An inventor, from Hopkinsville, Ky., thought ... at home, so he invented the patent-pending ELECTRONIC M.D. , The ELECTRONIC M.D. ... doing so, it could help to prevent potential overdose situations. As a result, ...
(Date:11/27/2015)... ... November 27, 2015 , ... MPWH, the No.1 Herpes-only dating community in the world, revealed ... 1-1 ). More than 3.7 billion people under the age of 50 – or ... to WHO's first global estimates of HSV-1 infection . , "The data shocks us ...
(Date:11/27/2015)... ... November 27, 2015 , ... Keeping ... platform for mental health and wellness consultation, has collaborated with a leading web-based ... the knowledge gap experienced by parents and bring advice from parenting experts within ...
(Date:11/27/2015)... ... November 27, 2015 , ... Indosoft ... announces the incorporation of Asterisk 11 LTS (Long Term Support) into its Q-Suite ... LTS brings Q-Suite 5.10 up-to-date with a version of Asterisk that will receive ...
Breaking Medicine News(10 mins):