Navigation Links
New Study: H.R. 4577 to Cost $21 Billion over 10 Years
Date:7/22/2014

WASHINGTON, July 22, 2014 /PRNewswire-USNewswire/ -- Legislation backed by the drugstore lobby (H.R. 4577, "Ensuring Seniors Access to Local Pharmacies Act of 2014") championing so-called "any willing pharmacy" mandates in Medicare Part D would undermine the availability of lower cost preferred pharmacy networks and increase Medicare spending by $21 billion over the next 10 years, according to new research from The Moran Company released by the Pharmaceutical Care Management Association (PCMA).

The drugstore lobby targets "medically underserved" areas that have nothing to do with pharmacy access and are defined so broadly that they encompass 95% of all Medicare beneficiaries.  By mandating that "any willing pharmacy" be included in preferred networks in these areas, the bill would gut the ability of plans to negotiate lower cost preferred pharmacy options for virtually all Medicare beneficiaries.

As the study notes, "there is not necessarily a relationship between the underserved areas targeted in the legislation and pharmacy access. The targeted underserved areas are identified by primary medical care, dental or mental health providers, without regard to pharmacy access."  Likewise, the study finds that preferred pharmacies would "discontinue discounting since such discounts would no longer be a requirement for preferred network participation."

Click here to read the study.

Today, the United States has more pharmacies than McDonald's, Wendy's, Burger Kings, Pizza Huts, Taco Bells, KFCs, Domino's Pizza and Dunkin' Donuts combined.

Key findings from The Moran Company study include:

  • While the legislation might appear on its face to be limited in geographic scope, our analysis of data from the Health Resources & Services Administration (HRSA) indicates that 94.77% of all Medicare Part D enrollees reside in counties meeting at least one of the "underserved area" criteria established in this legislation.
  • After offsets, we estimate that enactment of this legislation would increase Federal mandatory spending by $21.32 billion over the 2015-2024 scoring window.

"This is a backdoor attempt to ban the popular, low premium plans that encourage shopping at more affordable pharmacies," said PCMA President and CEO Mark Merritt. "How can plans reduce premiums if their 'discount networks' have to include each community's highest-priced drugstore?"

The Federal Trade Commission (FTC) recently wrote a letter to the Centers for Medicare and Medicare Services (CMS) on any willing pharmacy provisions included in the agency's Medicare Part D rule.  The FTC warned that:

"The proposed any willing pharmacy provisions threaten the effectiveness of selective contracting with pharmacies as a tool for lowering costs. Requiring prescription drug plans to contract with any willing pharmacy would reduce the ability of plans to obtain price discounts based on the prospect of increased patient volume and thus impair the ability of prescription drug plans to negotiate the best prices with pharmacies.

"Evidence suggests that prescription drug prices are likely to rise if Prescription Drug Plans ("PDPs") are less able to assemble selective pharmacy networks. The proposed provisions may also hinder the ability of plans to steer beneficiaries to lower-cost, preferred pharmacies and preferred mail order."

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 216 million Americans.

Follow PCMA on Twitter


'/>"/>
SOURCE Pharmaceutical Care Management Association
Copyright©2014 PR Newswire.
All rights reserved

Related medicine technology :

1. National Study: Teen "Heavy" Marijuana Use Up 80 Percent Since 2008, One in Ten Teens Reports Using Marijuana at Least 20 Times a Month
2. Inaugural Harris Poll Physician Pulse(SM) Study: Viagra® and Cialis® are Highest Ranked in Trust
3. Clinical Study: Dietary Supplement SagaPro Reduces Frequent Urination
4. WebMD Study: U.S. Doctors Deeply Divided on Many Matters of Ethical Ambiguity
5. Prostate Cancer Study: Most Patients Report Satisfaction After Robotic Surgery
6. Study: Surefire Medicals Technology Improves Delivery Of Embolics In Cancer Treatment
7. National Study: Teen Misuse and Abuse of Prescription Drugs Up 33 Percent Since 2008, Stimulants Contributing to Sustained Rx Epidemic[1]
8. NPC, UMD Study: Factors That Cause Different Treatment Responses Are Not Well Understood or Studied
9. New Study: Medicare Preferred Pharmacy Network Plans Offer Lower Average Premiums, Same Quality as Non-Preferred Network Plans
10. Watson to Acquire Actavis Group for EUR4.25 Billion
11. Grant & Eisenhofer Represents Lead Whistleblower in Historic $1.6 Billion Settlement with Abbott Laboratories Over Off-Label Marketing of Antiepileptic Medication Depakote
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/16/2017)... Feb. 16, 2017 Research and Markets ... Emerging Medical Device Technologies" report to their offering. ... Traditional ... procedures, general instruments, non-drug coated implantables, large endoscopes, needle based ... use over the last two to three decades for the ...
(Date:2/16/2017)... Ontario , Feb. 16, 2017  Aralez Pharmaceuticals ... global specialty pharmaceutical company, today announced that executive management ... Conference to be held February 22-23, 2017. Adrian ... of the Company at 1:35 p.m. local time on ... and audio archive for the event may be accessed ...
(Date:2/16/2017)... , Feb. 16, 2017  AcelRx Pharmaceuticals, ... pharmaceutical company focused on the development and commercialization ... acute pain, announced that Vincent J. Angotti ... a member of the company,s board of directors, ... over two decades of experience leading executive and ...
Breaking Medicine Technology:
(Date:2/18/2017)... CA (PRWEB) , ... February 18, 2017 , ... ... paragraph presets. Use Pixel Film Studios ’ ProParagraph Fashion Volume 2 ... and so many other applications. Users can pick and choose from hand-crafted ...
(Date:2/17/2017)... Davidson, NC (PRWEB) , ... February 17, 2017 , ... ... Davidson Commons Shopping Center in Davidson, NC. Dr. Brian Seese leads the practice as ... of dental services under one roof. Smiles by Seese serves patients of all ages ...
(Date:2/17/2017)... ... February 17, 2017 , ... The Alliance Healthcare ... designed to further positively impact the health and wellness of our community in ... it our duty to seriously consider releasing our assets beyond our 5% targeted ...
(Date:2/17/2017)... Nashville, TN (PRWEB) , ... February 17, 2017 ... ... Services, Inc. (ISTS) brings its educational assistance management solution to the exhibit floor ... Convention Center in Orlando, Fla. , From Feb. 19–23, 2017, more than ...
(Date:2/17/2017)... Verdes, CA (PRWEB) , ... February 17, 2017 ... ... emotional flow is Dr. Carol Francis' goals for each and every ... Conference, Dr. Carol Francis will demonstrate five different brainwave tools which help energize ...
Breaking Medicine News(10 mins):