Pharmacists Praise Enactment of North Dakota Bill Providing Transparency to Drug Reimbursement



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Alexandria, Va. April 15, 2013 - After unanimous support in both the North Dakota House and Senate in passing H.B. 1363, North Dakota Governor Jack Dalrymple (R) has signed the bipartisan, common-sense legislation into law. The bill requires the administrators of prescription drug plans, pharmacy benefit managers (PBMs), to let pharmacies know how reimbursement for generic prescription drugs is calculated under the maximum allowable costs (MAC) benchmarks, and provides a more defined appeals process for pharmacies to contest MAC reimbursement caps set by PBMs.

In response, B. Douglas Hoey, RPh, MBA, National Community Pharmacists Association (NCPA) CEO issued the following statement:

"A special thanks must be given to all of North Dakota's elected officials and to the yeoman like efforts of the North Dakota Pharmacy Association (NDPhA) and its Executive Vice President Mike Schwab, as well as all North Dakota pharmacists in helping to pass H.B. 1363. This legislation will help give pharmacists a greater window into a secretive reimbursement process, and give pharmacies avenues for redress, such as when payments aren't updated when drug costs rise.

"In North Dakota there are over 200 independent community pharmacies that provide an estimated 2,109 jobs, which contribute greatly to local and state tax revenue. H.B. 1363 provides these small businesses with some basic fairness concerning payments for generic prescription drugs, which make up approximately 80 percent of prescription sales for pharmacies.

"North Dakota joins Kentucky and Arkansas as the first three states to have enacted MAC reform legislation. Other states are considering taking similar action. NCPA will continue to work with our allies across the country to achieve more legislative victories."

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The National Community Pharmacists Association (NCPA®) represents the interests of America's community pharmacists, including the owners of more than 23,000 independent community pharmacies. Together they represent an $88.5 billion health care marketplace, dispense nearly 40% of all retail prescriptions, and employ more than 300,000 individuals, including over 62,000 pharmacists. To learn more go to www.ncpanet.org or read NCPA's blog, The Dose, at http://ncpanet.wordpress.com/.

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