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:1/18/2017)... , Jan. 18, 2017 Safe Rx ... of pharmacies based in Loveland, Colorado ... Vials (LPVs) in selected Good Day locations.     ... a cost-effective alternative for secure storage," said Milton ... less than the price of a cup of coffee, ...
(Date:1/18/2017)... , Jan. 18, 2017 Invetech, ... for cell and advanced therapies , has announced ... biopharmaceutical company developing "tumor starvation" treatments for acute ... needs. Under the agreement, Invetech will develop systems ... on Erytech,s proprietary ERYCAPS technology platform, which uses ...
(Date:1/18/2017)... , January 18, 2017 After ... people regarding the use of cannabis both for medical and ... are more Americans open to the use of cannabis, but ... sectors. According to Arcview Market Research, the North American legal ... 30% from the previous year. The research projects sales will ...
Breaking Medicine Technology:
(Date:1/18/2017)... Agoura Hills, CA (PRWEB) , ... January 18, ... ... risk of dental problems ranging from gum disease to enamel erosion, and those ... from the Massachusetts Department of Public Health, many pregnant women are failing to ...
(Date:1/17/2017)... ... January 17, 2017 , ... Anesthesia Progress ... dentists to choose the best drug option for each patient. Dentists have several general ... better overall outcomes. , Researchers from the Tokyo Dental College in Tokyo, Japan wanted ...
(Date:1/17/2017)... ... ... For breast cancer clinicians and researchers who were unable to attend the 2016 ... and analysis of its highlights, a novel half-day, complimentary meeting—the 14th Annual Best of ... 4, 2017 in Chicago. Chaired by Kathy S. Albain, MD, FACP, FASCO from the ...
(Date:1/17/2017)... ... ... SunView Software’s Service Smart Technology has been selected as a finalist for ... year, Pink Elephant recognizes a new product or service developed by an IT services ... opportunity. The award highlights original innovations that were released in 2016, either as a ...
(Date:1/17/2017)... ... January 17, 2017 , ... ... century approach to infusing high speed technology into the fabric of an entire ... the advancement of healthcare and wellness in a yet-to-be-named, health focused campus. Leading ...
Breaking Medicine News(10 mins):