NACDS, NCPA Commend Reps. Rogers, Braley for Letter Raising Bipartisan Concerns over Flawed Medicaid Pharmacy Reimbursement Process



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Alexandria, Va. - Dec. 15, 2011

The National Association of Chain Drug Stores (NACDS) and National Community Pharmacists Association (NCPA) commended U.S. Representatives Bruce Braley (D-IA), Mike Rogers (R-MI) and 38 of their colleagues who expressed serious concerns with draft Federal Upper Limits (FUL) lists that have been recently published by the Centers for Medicare & Medicaid Services (CMS).

"We are concerned that these lists contain flawed information that is not reliable for use in establishing pharmacy reimbursement in Medicaid. We ask that you direct states not to use these draft lists for reimbursement purposes until they can be improved and finalized through a formal notice of proposed rule," the members of Congress wrote in a letter to CMS.

NACDS and NCPA have also expressed concern with the draft FUL lists in written comments to CMS. "We are heartened that our arguments have been given further credibility by a large, bipartisan group of Representatives," stated NACDS President and Chief Executive Officer Steven C. Anderson, IOM, CAE and NCPA CEO B. Douglas Hoey, RPh, MBA. "We want to especially thank Representatives Braley and Rogers for their leadership on this important issue."

In addition to urging CMS to cease publication of draft FUL lists until a final AMP rule is in place, the Representatives also urged the agency to be mindful of comprehensive pharmacy reimbursement. "When setting pharmacy reimbursement rates both components of reimbursement—product cost and cost to dispense—must be taken into consideration when determining whether pharmacies are paid adequately," the members of Congress wrote.

The Braley-Rogers letter can be viewed here.

The National Association of Chain Drug Stores (NACDS) represents traditional drug stores, supermarkets, and mass merchants with pharmacies—from regional chains with four stores to national companies. Chains operate 39,000 pharmacies, and employ more than 2.7 million employees, including 118,000 full-time pharmacists. They fill nearly 2.6 billion prescriptions annually, which is more than 72 percent of annual prescriptions in the United States. The total economic impact of all retail stores with pharmacies transcends their $830 billion in annual sales. Every $1 spent in these stores creates a ripple effect of $1.96 in other industries, for a total economic impact of $1.57 trillion, equal to 11 percent of GDP. NACDS represents 137 chains that operate these pharmacies in neighborhoods across America, and NACDS members also include more than 900 pharmacy and consumer packaged goods suppliers and service providers, and over 60 international members from 23 countries. For more information about NACDS, visit www.NACDS.org.

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 a $93 billion health care marketplace, dispense nearly 40% of all retail prescriptions, and employ more than 315,000 people, including 62,400 pharmacists. Independent community pharmacists are readily accessible medication experts who can help lower health care spending. They are committed to maximizing the appropriate use of lower-cost generic drugs and reducing the estimated $290 billion that is wasted annually by improper medication use. To learn more go to www.ncpanet.org or read NCPA's blog, The Dose, at http://ncpanet.wordpress.com.

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