Navigation Links
PCMA Outlines $100 Billion in Prescription Drug Savings for Deficit Reduction Committee
Date:8/31/2011

WASHINGTON, Aug. 31, 2011 /PRNewswire-USNewswire/ -- As the Joint Select Committee on Deficit Reduction examines options to reduce the deficit by $1.5 trillion over the next ten years, the Pharmaceutical Care Management Association (PCMA) outlined in a letter to the committee opportunities to leverage greater use of pharmacy benefit management tools to save more than $100 billion in prescription drug costs over that same time period.

"Everyone in the pharmacy community: drugstores, pharmacy benefit managers, drug companies, drug wholesalers, and others have a responsibility to offer cost-saving solutions to this committee," said PCMA President and CEO Mark Merritt. "The solutions we outline would save more than $100 billion, improve prescription drug benefits, and increase access to these benefits."

Using innovative cost-saving tools and technologies, PBMs have worked closely with payers in designing drug benefits that lower costs and expand access to prescription drugs.  These tools – including pharmacy networks, home delivery, utilization management (such as step therapy and prior authorization), and formularies – help make prescription drug benefits more affordable.

Below are options PCMA recommended to the Joint Select Committee:

  • Modernize Medicaid Pharmacy. Over the next decade, the federal government could save $21 billion – without cutting benefits or payments to doctors and hospitals – by modernizing Medicaid pharmacy benefits. Currently, the program uses fewer generic drugs and pays drugstores more than double the dispensing fees that Medicare or private insurers pay.
  • Maximize Generic and Therapeutic Substitution in Part D.  Fully realize the potential savings available as outlined by the Congressional Budget Office to increase generic and therapeutic interchange opportunities in Part D by shifting spending from the most expensive single source drugs to equally effective lower cost options.
  • Expedite the Approval of Biogenerics.  Increase competition for biologic drugs by reducing the number of years a drug company has "exclusivity" or monopoly pricing power.   As the number and costs of these expensive biologic drugs drastically increases, so does the urgency to begin the approval pathway for biogenerics as quickly as possible.  
  • Allow Part D Plans to Negotiate Greater Discounts on All Drugs.  Increase price competition among brand drug manufacturers by removing the mandate that "all or substantially all" drugs in six protected classes be covered.  Manufacturers with a guarantee that their drug is covered have no incentive to offer a discount to Part D plans or beneficiaries.
  • Ban a Tax Deduction for Direct-to-Consumer (DTC) Drug Advertising.  DTC drug advertising is a key tool used by brand drug manufacturers to drive consumers to take brand medications and the costs of this advertising are tax deductible.  While the First Amendment allows for such advertising, it does not require tax payers to subsidize promoting the most expensive drug treatments.
  • Encourage Chronic Care Pharmacy and Home Delivery.  Currently, due to restrictions in Medicare Part D, beneficiaries in private-sector retiree plans use home delivery four times more often than those in Part D plans.  Home delivery is popular with patients because it offers less expensive 90-day prescriptions and is more convenient than driving to the drugstore.  With mail-service pharmacies, patients can get private counseling over the phone from trained pharmacists seven days a week, 24 hours a day.  Removing Medicare's restrictions on home delivery and encouraging beneficiaries to get their maintenance medications by mail could improve drug adherence and save Medicare hospital and physician costs.
  • Ban Pay-for-Delay Drug Settlements.  Currently, brand drug companies are making deals with generics to delay offering a competing generic, allowing the more expensive brand drug to stay on the market for a longer period of time, resulting in higher costs.  Prohibiting pay-for-delay agreements would facilitate quicker access to lower-cost generics.

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.


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

Related medicine technology :

1. FDA Outlines Oversight of Mobile Medical Applications
2. Lilly Outlines For Investors How Its Innovation-Based Strategy and Robust Pipeline Will Drive Future Growth Following Upcoming Patent Expirations
3. Oclaro Provides Complete Fiber Laser Diode Solutions Portfolio; Outlines Future Innovation and Technology Advancements
4. Amgen Outlines Strategy, Growth Objectives and Capital Allocation Plans
5. Mithridion, Inc. Announces New Funding and Outlines Strategy for Central Nervous System Drug Development
6. Medical Affairs Report Outlines Resource Needs for Group Success
7. Alexza Pharmaceuticals Updates Staccato® Pipeline and Outlines Pipeline Development Strategy
8. Solos Endoscopy, Inc. Outlines Marketing Strategy for 2010 Campaign
9. Lilly Outlines Innovation Strategy, Reviews Promising Pipeline of Potential Medicines and Sets 2010 Financial Guidance
10. Is Poor Medical Equipment Planning Costing your Healthcare Project Wasted Dollars and Delays? ECRI Institute outlines best practices to ensure better outcomes
11. Bob McDonald Outlines Key Long Term Growth Strategies To P&G Shareholders
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:12/2/2016)... bioLytical Laboratories, ein Weltführer bei schnellen Tests für ... Apothekenbundes von Kenia eingeführt. Continue Reading ... ... Test! (PRNewsFoto/bioLytical Laboratories) ... http://photos.prnewswire.com/prnh/20161201/444905 ) bioLytical wurde durch die ...
(Date:12/2/2016)... , December 2, 2016 Orthopedic Implants ... Support) is Expected to Gain a Significant Market Share Owing ... Ailments  ... According to a new ... Medical Implants Sterile Packaging: Clamshell Product Type Segment Projected to ...
(Date:12/2/2016)... December 2, 2016 On Thursday, the ... in red, while the Dow Jones Industrial Average managed to ... of US markets, which prompted Stock-callers this morning to look ... (NASDAQ: NUVA ), Smith & Nephew PLC (NYSE: ... NXTM ), and Cesca Therapeutics Inc. (NASDAQ: KOOL ...
Breaking Medicine Technology:
(Date:12/2/2016)... ... December 02, 2016 , ... ‘Tis the season for giving! Today, 20 creative ... National Family Partnership and the Drug Enforcement Administration as part of the National Red ... 10 winning schools who decorated their campuses with this year’s Red Ribbon Week theme: ...
(Date:11/30/2016)... , ... November 30, 2016 , ... ... they now offer a comprehensive in-house dental plan for all patients. Understanding that ... a plan that gives patients a number of perks, including discounts on many ...
(Date:11/30/2016)... ... November 30, 2016 , ... ... Deloitte Wisconsin 75, an annual ranking and recognition of the largest closely held ... list, having ranked from 2008-2016. In addition, Standard Process was awarded the Talent ...
(Date:11/30/2016)... ... November 30, 2016 , ... Center For ... announced the opening of a new residential mental health treatment program in Chino ... issues such as severe anxiety, depression, bi-polar disorder, and other related issues. , ...
(Date:11/30/2016)... ... November 30, 2016 , ... ... and stylish design wanted by today’s consumers at an affordable price, is now ... says the new watch is “a game changer” when it comes to the ...
Breaking Medicine News(10 mins):