Navigation Links
PCMA: California Medicaid Could Save $2 Billion, Avoid Drugstore Litigation by Modernizing Medicaid Pharmacy
Date:8/5/2011

WASHINGTON, Aug. 5, 2011 /PRNewswire-USNewswire/ -- Pharmaceutical Care Management Association (PCMA) President and CEO Mark Merritt released the following statement today on a new lawsuit by several drugstore lobbying groups to prevent the California Medicaid program from reducing pharmacy payments:

"California could have sidestepped this litigation and reduced more than $2 billion in wasteful spending by following Governor Andrew Cuomo's (D-NY) example and modernizing Medicaid pharmacy. Most Medicaid programs, including California, pay higher pharmacy fees than Medicare Part D and most other programs which pay drugstores based on market competition.

"In Medicaid, pharmacy rates are set by government officials who face intense, special interest pressure to keep rates artificially high. The results speak for themselves: in California, Medicaid pays drugstores $7.25 to fill a prescription while Medicare Part D and most private sector programs pay only about $2.00 for the same service. It's time to modernize pharmacy benefits in California."

Research: Modernize Medicaid Pharmacy to Save Billions, Preserve Access

California, like most state Medicaid programs, pays too much for prescription drugs because it uses an archaic fee-for-service (FFS) approach in which state officials set payment rates and are therefore constantly lobbied to inflate them by special interests, like the drugstore lobby. To avoid this trap, most non-Medicaid drug benefits programs – like those offered by Medicare, employers, and unions – rely upon independent, third party pharmacy benefit experts to negotiate competitive rates with pharmacies. These programs also reduce costs by employing cutting-edge, market-proven strategies to increase the use of generics.

In the California Medicaid FFS program, just 64% of prescriptions dispensed were generics, significantly less than the average 80% generic dispensing rate typical of Medicaid managed care plans.

* Polling finds voters would rather modernize Medicaid pharmacy than cut benefits for patients or payments to doctors and hospitals.
* Transitioning to a more efficient and affordable pharmacy benefit model would save states across the country billions without limiting access the National Center for Policy Analysis (NCPA) announced in a new white paper, "Increasing the Cost-Effectiveness of Medicaid Drug Programs."
* Research shows California consumers have broad access to pharmacy choices in urban, suburban, and rural areas, as an average of 24 pharmacies are located and compete near independent pharmacies throughout the United States. The independent drugstore lobby's own economic report found that 400 new stores opened last year amidst what was a very profitable year for the industry despite the economic downturn.

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 200-plus million Americans.

Follow PCMA on Twitter


'/>"/>
SOURCE Pharmaceutical Care Management Association
Copyright©2010 PR Newswire.
All rights reserved

Related medicine technology :

1. PCMA: Part D Plans and PBMs Continue to Deliver Savings in Medicare
2. PCMA: Study Credits PBM Tools with Reducing Prescription Drug Spending Growth
3. PCMA: Anti-Fraud Group Spotlights Policies that Promote Health Care Fraud and Abuse
4. PCMA: Mississippis Secret Prescription Drug Tax Will Raise Costs
5. PCMA: Generics, Mail-Service Pharmacy Recognized as Ways to Reduce Costs for TRICARE Program
6. PCMA: Some Drugmakers Lobbying to Limit E-Prescribing of Generics, Drug Safety Checks
7. PCMA: Florida Could Reduce $462 Million in Wasteful Medicaid Pharmacy Spending
8. PCMA: Focus on Patients, Not Profits, in Medicaid Pharmacy
9. PCMA: Ohios Medicaid Program Could Save $135 Million
10. PCMA: Independent Drugstore Lobby Continues Disclosure Double Standard Transparency Campaign
11. Novis Pharmaceuticals Opens New Location in San Luis Obispo, California
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:10/11/2017)... FRISCO, Texas , Oct. 11, 2017 /PRNewswire/ ... healthcare services, has amplified its effort during National ... patients about hereditary cancer risks. ... Journal of Clinical Oncology calculated that more than ... to have inherited mutations in BRCA1 or BRCA2 and ...
(Date:10/10/2017)... Calif. , Oct. 10, 2017  NDS received FDA 510(k) ... — a medical-grade battery-powered display stand specifically designed for endoscopy environments. ... transform technology into a clinical solution to support the improvement of ... Innovative Design ... Mobile Wireless Solution ...
(Date:10/7/2017)... Oct. 6, 2017   Provista, a proven ... $100 billion in purchasing power, today announced a new ... The Newsroom is the online home for ... infographics, expert bios, news releases, slideshows and events. ... a wealth of resources at their fingertips, viewers can ...
Breaking Medicine Technology:
(Date:10/12/2017)... ... 12, 2017 , ... IsoComforter, Inc. ( https://isocomforter.com ), one of ... innovative new design of the shoulder pad. The shoulder pad provides optimal support ... your pain while using cold therapy. By utilizing ice and water that is circulated ...
(Date:10/12/2017)... , ... October 12, 2017 , ... ... delivery system that we intend to develop to enable prevention of a major ... to severe hearing loss, especially in pediatric patients. For cisplatin, hearing loss is ...
(Date:10/12/2017)... ... October 12, 2017 , ... Leading pediatric oncology experts at ... D.C., for the 49th Congress of the International Society of Paediatric Oncology ... the Center for Cancer and Blood Disorders at Children’s National, and Stephen ...
(Date:10/12/2017)... ... , ... Health Literacy Innovations (HLI), creator of the Health ... Cancer Patient Education Network (CPEN), an independent professional organization that shares best practices ... , As CPEN’s strategic partner, HLI will help support CPEN members by ...
(Date:10/12/2017)... ... 12, 2017 , ... Farm Forward joins Bon ... leading institutions in announcing the launch of the Leadership Circle , a ... are raised for food. , Founding members of the Leadership Circle also include ...
Breaking Medicine News(10 mins):