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

neric 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 thei
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  • SOURCE Pharmaceutical Care Management Association
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