Royce C. Lamberth, United States District Judge, signed Court Orders to POSTPONE AMP as well as to POSTPONE posting of AMP on a public website stating: "Defendents' (CMS) actions are likely to cause Plantiff's (NACDS and NCPA) to suffer irreparable harm for which no adequate remedy at law exists as Plantiff's members will not be able to recover from the Defendants if the AMP rule is implemented, and thousands of Plantiff's members pharmacies are expected to be forced to reduce hours and services, forced out of the Medicaid program, or forced to close." Please read the full 3 page Court Order.
Special thanks to Tobey Schule, RPh for sharing this information with us.
Thursday, December 20, 2007
Saturday, December 15, 2007
NACDS Press Release...CMS will not be permitted to post AMP data on the Internet.
NACDS Press Release
FOR IMMEDIATE RELEASE
December 14, 2007
Contact: Chrissy Kopple, NACDS(703) 837-4266
John Norton, NCPA(703) 600-1174
Initial Victory for NACDS, NCPA in Lawsuit to Protect Low-Income Patients' Access to MedicationsJudge Grants Injunction Preventing CMS from Implementing Reimbursement Cuts, Posting Flawed AMP Data
Alexandria, VA - The National Association of Chain Drug Stores (NACDS) and the National Association of Community Pharmacists (NCPA) received an initial victory in their legal strategy to prevent Medicaid pharmacy reimbursement cuts. On the preliminary injunction motion filed by the groups on November 15, the United States District Court for the District of Columbia put the brakes on efforts by the Centers for Medicare and Medicaid Services (CMS) to impose Medicaid pharmacy reimbursement reductions scheduled to be implemented next month, and hamper access for low-income patients' to medications.
Judge Royce Lamberth ruled today that CMS will not be permitted to post data on the Internet related to the average manufacturer price (AMP) of generic pharmaceuticals. Nor will Medicaid reimbursement cuts take effect before Judge Lamberth has had an opportunity to fully review and make a final decision the merits of the lawsuit.
NACDS and NCPA filed a lawsuit against CMS and the U.S. Department of Health and Human Services, as well as, in their official capacities, Health and Human Services Secretary Michael O. Leavitt and CMS Acting Administrator Kerry Weems on November 7, 2007.
"We are very pleased that Judge Lamberth's ruling was not only fair, but positive for the community pharmacy industry," said NCPA CEO and Executive Vice President Bruce Roberts, R.Ph. and NACDS President and CEO Steven C. Anderson, IOM, CAE in a joint reaction to the preliminary injunction. "We cannot emphasize enough how these Medicaid cuts would hurt low-income patients who may have difficulty accessing their prescription medications in the nation's pharmacies.
"In a recent report, Stephen W. Schondelmeyer, Pharm.D., Ph.D., director of the PRIME Institute at the University of Minnesota, provided dire warnings about the effects of the cuts. Dr. Schondelmeyer indicated the retail pharmacy industry could see a loss of 10,000-12,000 pharmacies - a vast majority of which would be pharmacies in rural or inner city urban areas - over the next few years. As frontline health care providers, Americans rely on their retail pharmacies for medications and health information. The potential loss of a large number of pharmacies nationwide impacts not only Medicaid patients, but all patients who rely on their pharmacies for prescription and health care services.
He also indicated the dangers of publishing flawed data. "In general, transparency of price information is usually a good thing for consumers and for the market. However, when disclosed information is complex, confusing, or even inaccurate the transparency loses its value or even becomes counterproductive," he said.
The next step in the legal process is a final ruling by Judge Lamberth on the merits of the lawsuit. Until that time, the AMP rule put forth by CMS will not take effect.
NCPA and NACDS remain vigilant in pushing for a legislative solution. "Only new legislation can completely eliminate the severe damage to community pharmacies and ensure that patients continue to have access to their prescription medications," Roberts and Anderson said.
###
The National Association of Chain Drug Stores (NACDS) represents the nation's leading retail chain pharmacies and suppliers, helping them better meet the changing needs of their patients and customers. Chain pharmacies operate more than 38,000 pharmacies, employ 114,000 pharmacists, fill more than 2.4 billion prescriptions yearly, and have annual sales of nearly $700 billion. Other members include almost 1,000 suppliers of products and services to the chain drug industry. NACDS international membership has grown to include 104 members from 29 countries. For more information about NACDS, visit http://www.nacds.org/.
Special Thanks to Peter Wolfgram, RPh for this timely update.
FOR IMMEDIATE RELEASE
December 14, 2007
Contact: Chrissy Kopple, NACDS(703) 837-4266
John Norton, NCPA(703) 600-1174
Initial Victory for NACDS, NCPA in Lawsuit to Protect Low-Income Patients' Access to MedicationsJudge Grants Injunction Preventing CMS from Implementing Reimbursement Cuts, Posting Flawed AMP Data
Alexandria, VA - The National Association of Chain Drug Stores (NACDS) and the National Association of Community Pharmacists (NCPA) received an initial victory in their legal strategy to prevent Medicaid pharmacy reimbursement cuts. On the preliminary injunction motion filed by the groups on November 15, the United States District Court for the District of Columbia put the brakes on efforts by the Centers for Medicare and Medicaid Services (CMS) to impose Medicaid pharmacy reimbursement reductions scheduled to be implemented next month, and hamper access for low-income patients' to medications.
Judge Royce Lamberth ruled today that CMS will not be permitted to post data on the Internet related to the average manufacturer price (AMP) of generic pharmaceuticals. Nor will Medicaid reimbursement cuts take effect before Judge Lamberth has had an opportunity to fully review and make a final decision the merits of the lawsuit.
NACDS and NCPA filed a lawsuit against CMS and the U.S. Department of Health and Human Services, as well as, in their official capacities, Health and Human Services Secretary Michael O. Leavitt and CMS Acting Administrator Kerry Weems on November 7, 2007.
"We are very pleased that Judge Lamberth's ruling was not only fair, but positive for the community pharmacy industry," said NCPA CEO and Executive Vice President Bruce Roberts, R.Ph. and NACDS President and CEO Steven C. Anderson, IOM, CAE in a joint reaction to the preliminary injunction. "We cannot emphasize enough how these Medicaid cuts would hurt low-income patients who may have difficulty accessing their prescription medications in the nation's pharmacies.
"In a recent report, Stephen W. Schondelmeyer, Pharm.D., Ph.D., director of the PRIME Institute at the University of Minnesota, provided dire warnings about the effects of the cuts. Dr. Schondelmeyer indicated the retail pharmacy industry could see a loss of 10,000-12,000 pharmacies - a vast majority of which would be pharmacies in rural or inner city urban areas - over the next few years. As frontline health care providers, Americans rely on their retail pharmacies for medications and health information. The potential loss of a large number of pharmacies nationwide impacts not only Medicaid patients, but all patients who rely on their pharmacies for prescription and health care services.
He also indicated the dangers of publishing flawed data. "In general, transparency of price information is usually a good thing for consumers and for the market. However, when disclosed information is complex, confusing, or even inaccurate the transparency loses its value or even becomes counterproductive," he said.
The next step in the legal process is a final ruling by Judge Lamberth on the merits of the lawsuit. Until that time, the AMP rule put forth by CMS will not take effect.
NCPA and NACDS remain vigilant in pushing for a legislative solution. "Only new legislation can completely eliminate the severe damage to community pharmacies and ensure that patients continue to have access to their prescription medications," Roberts and Anderson said.
###
The National Association of Chain Drug Stores (NACDS) represents the nation's leading retail chain pharmacies and suppliers, helping them better meet the changing needs of their patients and customers. Chain pharmacies operate more than 38,000 pharmacies, employ 114,000 pharmacists, fill more than 2.4 billion prescriptions yearly, and have annual sales of nearly $700 billion. Other members include almost 1,000 suppliers of products and services to the chain drug industry. NACDS international membership has grown to include 104 members from 29 countries. For more information about NACDS, visit http://www.nacds.org/.
Special Thanks to Peter Wolfgram, RPh for this timely update.
Wednesday, December 12, 2007
Response from Congressman Denny Rehberg
Dear Eric :
Thank you for contacting me regarding protecting our community pharmacies, it's good to hear from you.
As you know, Montana 's independent and community pharmacies are facing a difficult business environment. Slow claims processing, low reimbursement rates, and an inability to negotiate prices on a level playing field with chain stores have put many of these small pharmacies out of business. That is why I have cosponsored two critical pieces of legislation, the Fair and Speedy Treatment (FAST) of Claims Act and the Community Pharmacy Fairness Act.
Independent pharmacies provide access to critical medications for many of Montana 's rural communities. However, due to a backlog in claims processing, many of these pharmacies aren't being reimbursed on time which can be devastating to business. This legislation would require these claims be processed quickly so independent pharmacies aren't being harmed.
The Fair and Speedy Treatment (FAST) of Claims Act of 2007 will ensure pharmacists are paid for their services in a timely manner by requiring Medicare Prescription Drug Plans to offer an electronic direct deposit for reimbursements to participating pharmacies. It also requires that claims submitted electronically must be paid within 14 days and all other claims be paid within 30 days.
The Community Pharmacy Fairness Act would grant independent pharmacies an exemption to anti-trust collusion regulations in regards to negotiating prices for their various medical supplies. Right now independent pharmacies are prohibited from sharing cost information or joint negotiations. However, larger chains such as CVS or Rite Aid do not face such restrictions. This bill would put the community pharmacies on the same level as the retail chains.
Both of these bills will benefit the more than 90 independent and community pharmacies in Montana . Rest assured that I will work tirelessly to provide timely economic relief to Montana 's small businesses.
Thanks again for contacting me. For further information or to sign up for my e-newsletter, please visit my website at www.house.gov/rehberg. Keep in touch.
Sincerely,
Denny Rehberg
Montana's Congressman
Thank you for contacting me regarding protecting our community pharmacies, it's good to hear from you.
As you know, Montana 's independent and community pharmacies are facing a difficult business environment. Slow claims processing, low reimbursement rates, and an inability to negotiate prices on a level playing field with chain stores have put many of these small pharmacies out of business. That is why I have cosponsored two critical pieces of legislation, the Fair and Speedy Treatment (FAST) of Claims Act and the Community Pharmacy Fairness Act.
Independent pharmacies provide access to critical medications for many of Montana 's rural communities. However, due to a backlog in claims processing, many of these pharmacies aren't being reimbursed on time which can be devastating to business. This legislation would require these claims be processed quickly so independent pharmacies aren't being harmed.
The Fair and Speedy Treatment (FAST) of Claims Act of 2007 will ensure pharmacists are paid for their services in a timely manner by requiring Medicare Prescription Drug Plans to offer an electronic direct deposit for reimbursements to participating pharmacies. It also requires that claims submitted electronically must be paid within 14 days and all other claims be paid within 30 days.
The Community Pharmacy Fairness Act would grant independent pharmacies an exemption to anti-trust collusion regulations in regards to negotiating prices for their various medical supplies. Right now independent pharmacies are prohibited from sharing cost information or joint negotiations. However, larger chains such as CVS or Rite Aid do not face such restrictions. This bill would put the community pharmacies on the same level as the retail chains.
Both of these bills will benefit the more than 90 independent and community pharmacies in Montana . Rest assured that I will work tirelessly to provide timely economic relief to Montana 's small businesses.
Thanks again for contacting me. For further information or to sign up for my e-newsletter, please visit my website at www.house.gov/rehberg. Keep in touch.
Sincerely,
Denny Rehberg
Montana's Congressman
Tuesday, December 11, 2007
Message from Peter Wolfgram, RPh: Update on DC Trip!
Fellow Pharmacists, Managers, and Owners
After a trip to Washington, DC in September and again in December to meet with Senator Baucus and staff, I have some important information to share with you.
September in DC was a hopeful time with the introduction of SB1951 in August and now being scored by the budget office. All bills introduced in congress must be scored as to how much this will cost the taxpayer. Those bills that have a cost associated with them must be offset by funds from some source in an attempt to keep the budget neutral. SB1951 corrected definitions in the Deficit Reduction Act as to what constituted a Retail Pharmacy and a Wholesaler. It also changed how AMP data is calculated and how the FUL is determined. It was taking an exceptionally long time to be scored and nobody knew why. The Prompt Pay bill is budget neutral so it does not have to be scored. Senator Baucus and staff were excited and very hopeful about this legislation. Representative Frank Pallone (NJ) introduced the same legislation in the house so pharmacy seemed to be in a fairly good position. Many senators and representatives signed on to these bills.
November was a time of uncertainty in DC. CMS made rumblings that they would begin publishing preliminary AMP data on a website beginning mid December. With this in mind and the lack of movement on any pharmacy legislation forced the NCPAS and NACDS to file a law suit in the DC courts to correct the inaccurate definitions and calculations of the DRA. After the lawsuit was filed, the above organizations also ask the court for an injunction to prevent the enactment of the AMP portion of the DRA saying that the enactment will cause irreparable harm to the pharmacy profession, retail pharmacies, and patient access.
December in DC is not all of good cheer. The good news is that the prompt pay bill will most likely be passed but will not really take effect until January of 2009. The PBMs whined and complained that it will take so much time to rewrite software and redo their computer systems. This I do not understand as we in Montana were paid every week by Medicaid with no extra time need to retool and no complaining on how much it will cost. Prompt pay will be coming to those of us still in business in 2009. AMP legislation is another story. Dead would be the correct term. While meeting with Senator Baucus and David Schwartz on December 5, the senator received an email memo addressed to the Senate Finance Committee from Mike Leavitt, head of HHS, stating that the Bush Administration wanted no changes to any part of Medicare Part D. Any changes would be met with the veto pen. Senator Baucus was visibly upset and let it be known to those of us present what he thought of the memo and the Bush Administration. He was not nice about it. Senator Grassley, the ranking Republican member had been making rumblings that nothing should be done about the DRA and AMP until we have more data on how this will affect pharmacy and patient access. This and the HHS memo have pretty much killed any AMP legislation this year. Senator Baucus and staff will be working on correcting the terms in DRA and asking for a 12 month delay in the implementation of the AMP and FUL changes. During this time the manufactures and wholesalers will submit data monthly and the AMP and FULs will be calculated but payments to pharmacies will not be tied to them. If this is successful then we have a 1 year reprieve. If not, then our last hope is the lawsuit and injunction. It is the administrations contention that pharmacists are overpaid and that there are way too many pharmacies in the country. With the enactment of the DRA, the marketplace will determine how many pharmacies will be left. Those pharmacies that are big enough and with the least amount of Medicaid will survive. The small independent pharmacies and small chains will be squeezed out of existence and the rural and inner city patient will suffer with lack of pharmaceutical services. The Bush Administration could care less.
The above information and views are personal observations do not necessarily represent the MPA, NCPA, nor the NACDS. Additional information can be obtained from Peter Wolfgram RPh, Belgrade, MT. Contact me at 406-388-0333 or Pwolfgram@bungalowdrug.com. I am available to meet in person with groups anywhere in Montana or northern Wyoming
Thanks for the update Peter!
After a trip to Washington, DC in September and again in December to meet with Senator Baucus and staff, I have some important information to share with you.
September in DC was a hopeful time with the introduction of SB1951 in August and now being scored by the budget office. All bills introduced in congress must be scored as to how much this will cost the taxpayer. Those bills that have a cost associated with them must be offset by funds from some source in an attempt to keep the budget neutral. SB1951 corrected definitions in the Deficit Reduction Act as to what constituted a Retail Pharmacy and a Wholesaler. It also changed how AMP data is calculated and how the FUL is determined. It was taking an exceptionally long time to be scored and nobody knew why. The Prompt Pay bill is budget neutral so it does not have to be scored. Senator Baucus and staff were excited and very hopeful about this legislation. Representative Frank Pallone (NJ) introduced the same legislation in the house so pharmacy seemed to be in a fairly good position. Many senators and representatives signed on to these bills.
November was a time of uncertainty in DC. CMS made rumblings that they would begin publishing preliminary AMP data on a website beginning mid December. With this in mind and the lack of movement on any pharmacy legislation forced the NCPAS and NACDS to file a law suit in the DC courts to correct the inaccurate definitions and calculations of the DRA. After the lawsuit was filed, the above organizations also ask the court for an injunction to prevent the enactment of the AMP portion of the DRA saying that the enactment will cause irreparable harm to the pharmacy profession, retail pharmacies, and patient access.
December in DC is not all of good cheer. The good news is that the prompt pay bill will most likely be passed but will not really take effect until January of 2009. The PBMs whined and complained that it will take so much time to rewrite software and redo their computer systems. This I do not understand as we in Montana were paid every week by Medicaid with no extra time need to retool and no complaining on how much it will cost. Prompt pay will be coming to those of us still in business in 2009. AMP legislation is another story. Dead would be the correct term. While meeting with Senator Baucus and David Schwartz on December 5, the senator received an email memo addressed to the Senate Finance Committee from Mike Leavitt, head of HHS, stating that the Bush Administration wanted no changes to any part of Medicare Part D. Any changes would be met with the veto pen. Senator Baucus was visibly upset and let it be known to those of us present what he thought of the memo and the Bush Administration. He was not nice about it. Senator Grassley, the ranking Republican member had been making rumblings that nothing should be done about the DRA and AMP until we have more data on how this will affect pharmacy and patient access. This and the HHS memo have pretty much killed any AMP legislation this year. Senator Baucus and staff will be working on correcting the terms in DRA and asking for a 12 month delay in the implementation of the AMP and FUL changes. During this time the manufactures and wholesalers will submit data monthly and the AMP and FULs will be calculated but payments to pharmacies will not be tied to them. If this is successful then we have a 1 year reprieve. If not, then our last hope is the lawsuit and injunction. It is the administrations contention that pharmacists are overpaid and that there are way too many pharmacies in the country. With the enactment of the DRA, the marketplace will determine how many pharmacies will be left. Those pharmacies that are big enough and with the least amount of Medicaid will survive. The small independent pharmacies and small chains will be squeezed out of existence and the rural and inner city patient will suffer with lack of pharmaceutical services. The Bush Administration could care less.
The above information and views are personal observations do not necessarily represent the MPA, NCPA, nor the NACDS. Additional information can be obtained from Peter Wolfgram RPh, Belgrade, MT. Contact me at 406-388-0333 or Pwolfgram@bungalowdrug.com. I am available to meet in person with groups anywhere in Montana or northern Wyoming
Thanks for the update Peter!
Tuesday, December 4, 2007
MPA Letter to Senator Baucus
November 29, 2007
Senator Max Baucus, Montana
507 Senate Hart Office Building
Washington, D.C. 20510
Dear Senator Baucus:
I am writing on behalf of the 500 plus members of the Montana Pharmacy Association to express our thanks and appreciation for your introduction of S. 1951 on August 2nd of this year. Passage of this bill is very important right now to community pharmacies in Montana and across the entire country. Our discussions with you in the summer of 2006 have borne great fruit. We thank you once again for the time and attention you gave us then and for your continued interest in this profession and its issues.
Since August we have been working with other state and national pharmacy organizations to obtain additional co-sponsors for the legislation. We were especially pleased to see Senator Tester co-sponsor them; and to see that Rep. Frank Pallone (NJ) has introduced a companion bill to S. 1951 in the House of Representatives which is HR3700. It is imperative to that S 1951 passes before the year end because the Deficit Reduction Act that defines Average Manufacture Price goes into effect on the first of the year. If this goes into effect, pharmacies will lose, on an average, 28% on any generic medication dispensed.
The healthcare debate continues and the key issues are still cost, quality and access. Our community pharmacists are the most accessible healthcare providers in the country. We still have pharmacies in Baker, Troy, Chinook and many other small and medium sized Montana communities. Thanks for working with us to be sure they are treated fairly so that they can stay in business and continue serving their patients and customers.
Thanks Again Senator Baucus,
James P. Seifert, President
P.O. Box 316
Troy Mt. 59935
(406) 295 4724
Senator Max Baucus, Montana
507 Senate Hart Office Building
Washington, D.C. 20510
Dear Senator Baucus:
I am writing on behalf of the 500 plus members of the Montana Pharmacy Association to express our thanks and appreciation for your introduction of S. 1951 on August 2nd of this year. Passage of this bill is very important right now to community pharmacies in Montana and across the entire country. Our discussions with you in the summer of 2006 have borne great fruit. We thank you once again for the time and attention you gave us then and for your continued interest in this profession and its issues.
Since August we have been working with other state and national pharmacy organizations to obtain additional co-sponsors for the legislation. We were especially pleased to see Senator Tester co-sponsor them; and to see that Rep. Frank Pallone (NJ) has introduced a companion bill to S. 1951 in the House of Representatives which is HR3700. It is imperative to that S 1951 passes before the year end because the Deficit Reduction Act that defines Average Manufacture Price goes into effect on the first of the year. If this goes into effect, pharmacies will lose, on an average, 28% on any generic medication dispensed.
The healthcare debate continues and the key issues are still cost, quality and access. Our community pharmacists are the most accessible healthcare providers in the country. We still have pharmacies in Baker, Troy, Chinook and many other small and medium sized Montana communities. Thanks for working with us to be sure they are treated fairly so that they can stay in business and continue serving their patients and customers.
Thanks Again Senator Baucus,
James P. Seifert, President
P.O. Box 316
Troy Mt. 59935
(406) 295 4724
MPA Letter to Congressman Rehberg
November 29, 2007
Rep. Denny Rehberg, Montana
U.S. House of RepresentativesRoom 516
Canon House Office Building
Washington, DC 20515
Dear Representative Rehberg:
I am writing on behalf of the 500 plus members of the Montana Pharmacy Association urge your support for the passage of HR 3700 introduced by Rep Frank Pallone (NJ). This is a companion bill of S. 1951 `Fair Medicaid Drug Payment Act of 2007 which was introduced by Senator Max Baucus and co-sponsored by Senator Jon Tester. Passage of this bill is very important right now to community pharmacies in Montana and across the entire country.
Our executive Director, Jim Smith, met with Brent Mead, in September, discussed HR 3700s with him and asked him to request your co-sponsorship of it. Jim tells me that Brent was very informed and knowledgeable about healthcare generally and rural healthcare issues in particular. Your commitment to Montana’s main street pharmacies came across loud and clear from Brent We thank you, for the time and attention you have given to this bill and your continued interest in this profession and its issues.
Since August we have been working with other state and national pharmacy organizations to obtain additional co-sponsors for the legislation. It is imperative to that HR 3700 passes before the year end because, the Deficit Reduction Act, that defines Average Manufacture Price, goes into effect on the first of the year. If this goes into effect, pharmacies will lose, on an average, 28% on any generic medication dispensed.
The healthcare debate continues and the key issues are still cost, quality and access. Our community pharmacists are the most accessible healthcare providers in the country. We still have pharmacies in Baker, Troy, Chinook and many other small and medium sized Montana communities. Thanks for working with us to be sure they are treated fairly so that they can stay in business and continue serving their patients and customers.
James P. Seifert, President
P.O. Box 316
Troy Mt. 59935
(406) 295 4724
Rep. Denny Rehberg, Montana
U.S. House of RepresentativesRoom 516
Canon House Office Building
Washington, DC 20515
Dear Representative Rehberg:
I am writing on behalf of the 500 plus members of the Montana Pharmacy Association urge your support for the passage of HR 3700 introduced by Rep Frank Pallone (NJ). This is a companion bill of S. 1951 `Fair Medicaid Drug Payment Act of 2007 which was introduced by Senator Max Baucus and co-sponsored by Senator Jon Tester. Passage of this bill is very important right now to community pharmacies in Montana and across the entire country.
Our executive Director, Jim Smith, met with Brent Mead, in September, discussed HR 3700s with him and asked him to request your co-sponsorship of it. Jim tells me that Brent was very informed and knowledgeable about healthcare generally and rural healthcare issues in particular. Your commitment to Montana’s main street pharmacies came across loud and clear from Brent We thank you, for the time and attention you have given to this bill and your continued interest in this profession and its issues.
Since August we have been working with other state and national pharmacy organizations to obtain additional co-sponsors for the legislation. It is imperative to that HR 3700 passes before the year end because, the Deficit Reduction Act, that defines Average Manufacture Price, goes into effect on the first of the year. If this goes into effect, pharmacies will lose, on an average, 28% on any generic medication dispensed.
The healthcare debate continues and the key issues are still cost, quality and access. Our community pharmacists are the most accessible healthcare providers in the country. We still have pharmacies in Baker, Troy, Chinook and many other small and medium sized Montana communities. Thanks for working with us to be sure they are treated fairly so that they can stay in business and continue serving their patients and customers.
James P. Seifert, President
P.O. Box 316
Troy Mt. 59935
(406) 295 4724
MPA Letter to Senator Tester
November 29, 2007
Senator Jon Tester, Montana
205 Senate Russell Office Building
Washington, D.C. 20510
Dear Senator Tester:
I am writing on behalf of the 500 plus members of the Montana Pharmacy Association to express our thanks and appreciation for your support and Co-sponsorship of S. 1951 `Fair Medicaid Drug Payment Act of 2007. Passage of this bill is very important right now to community pharmacies in Montana and across the entire country. Our discussions with you in the summer of 2006 have borne great fruit. We thank you once again for the time and attention you have given to this bill and your continued interest in this profession and its issues.
Since August we have been working with other state and national pharmacy organizations to obtain additional co-sponsors for the legislation. We were especially pleased to see that Rep. Frank Pallone (NJ) has introduced a companion bill to S. 1951 in the House of Representatives which is HR3700. It is imperative to that S 1951 passes before the year end because, the Deficit Reduction Act, that defines Average Manufacture Price, goes into effect on the first of the year. If this goes into effect, pharmacies will lose, on an average, 28% on any generic medication dispensed.
The healthcare debate continues and the key issues are still cost, quality and access. Our community pharmacists are the most accessible healthcare providers in the country. We still have pharmacies in Baker, Troy, Chinook and many other small and medium sized Montana communities. Thanks for working with us to be sure they are treated fairly so that they can stay in business and continue serving their patients and customers.
Thanks Again Senator Tester,
James P. Seifert, President
P.O. Box 316
Troy Mt. 59935
(406) 295 4724
Senator Jon Tester, Montana
205 Senate Russell Office Building
Washington, D.C. 20510
Dear Senator Tester:
I am writing on behalf of the 500 plus members of the Montana Pharmacy Association to express our thanks and appreciation for your support and Co-sponsorship of S. 1951 `Fair Medicaid Drug Payment Act of 2007. Passage of this bill is very important right now to community pharmacies in Montana and across the entire country. Our discussions with you in the summer of 2006 have borne great fruit. We thank you once again for the time and attention you have given to this bill and your continued interest in this profession and its issues.
Since August we have been working with other state and national pharmacy organizations to obtain additional co-sponsors for the legislation. We were especially pleased to see that Rep. Frank Pallone (NJ) has introduced a companion bill to S. 1951 in the House of Representatives which is HR3700. It is imperative to that S 1951 passes before the year end because, the Deficit Reduction Act, that defines Average Manufacture Price, goes into effect on the first of the year. If this goes into effect, pharmacies will lose, on an average, 28% on any generic medication dispensed.
The healthcare debate continues and the key issues are still cost, quality and access. Our community pharmacists are the most accessible healthcare providers in the country. We still have pharmacies in Baker, Troy, Chinook and many other small and medium sized Montana communities. Thanks for working with us to be sure they are treated fairly so that they can stay in business and continue serving their patients and customers.
Thanks Again Senator Tester,
James P. Seifert, President
P.O. Box 316
Troy Mt. 59935
(406) 295 4724
"Gone To The Hill"
Special thanks to Tobey Schule, RPh, Peter Wolfgram, RPh, and Gina McCarthy Pharm.D. for taking time from their busy schedules and family to go to the Hill to support Senator Baucus’s AMP (average manufacturer price) fix bill S.1951. NCPA (National Community Pharmacists Association) will be flying these 3 Montanans to DC this morning on Tuesday December 4th to talk to Senator Baucus, David Schwartz, and hopefully, a meeting with some of the Senate Finance Committee.
Centers for Medicare and Medicaid Services (CMS) had announced on July 6th, 2007 that Medicaid must use the new Federal Upper Limit (FUL), the maximum amount states can pay pharmacies for generic Medicaid drugs, which will be based on 250% of the lowest generic medications AMP. This rule is part of the Deficit Reduction Act of 2005, mandating CMS to reduce Federal and State Medicaid costs by 8.4 billion dollars over the next 5 years.
Ever since CMS had announced their drastic cuts for Medicaid reimbursement, pharmacy associations including: NCPA, NACDS, APhA, NRHA, and MPA are pushing for Senator Baucus’s S.1951 AMP fix. NCPA and NACDS have even joined forces and filed suit against CMS for their AMP ruling. This is all for a good reason. The Government Accountability Office (GAO) identified the reimbursement on average is 36% less than the acquisition costs for generic medications. What this means is pharmacies may have to turn Medicaid patients away or close their doors trying to serve them. Tobey, Peter, and Gina are in DC to meet with NCPA then head to the Hill to speak with Senator Baucus, his staff, and maybe some members of the Senate Finance Committee in attempts to safeguard patient access to community pharmacies by giving their support for S.1951 and H.R.3700.
Senator Baucus had introduced S.1951 "The Fair Medicaid Drug Payment Act of 2007" on August 2nd, 2007. For the most part, this bill removes the outlying mail order acquisition costs from the mix on figuring AMP, uses Average AMP instead of Lowest AMP, and raises reimbursement from 250% to 300%. Please visit GrizRPh.com “In the Spotlight” for more information.
In addition, Representative Pallone had introduced H.R.3700 on October 28th, which is the companion bill to Senator Baucus's S.1951, also known as the "The Fair Medicaid Drug Payment Act of 2007" in the Senate. The two bills can be meshed easily and can save our pharmacies before the dreaded new AMP attacks pharmacies pocket books.
Jim Smith, Executive Director of the Montana Pharmacy Association explains, ‘this is where I figured we'd be around now with AMP legislation...S.1951 is the last realistic vehicle for getting anything done on AMP this session of Congress. That's why I felt strongly that I needed to go to DC in September...to beat the drum with my counterparts in other states, and with APhA (American Pharmacists Association) regarding AMP and S.1951. Both S.1951 and H.R.3700 are identical versions of AMP legislation in the Senate and the House and we have two committee chairs, both Senator Baucus, Chairman of the U.S. Finance Committee, and Representative Pallone, Chair of the Subcommittee on Health in the Energy and Commerce Committee, which has sole jurisdiction over Medicaid, sponsoring these bills which is key to our success in the next week or so.’
In addition, Jim Seifert, RPh, President of the Montana Pharmacy Association, asked Tobey Schule to hand deliver letters of support from MPA, in which you can read on GrizRPh News just above..Lets give a special thanks to Tobey, Peter, and Gina for their efforts in safeguarding patient access to community pharmacies. Hats off to all three of you…Thank you!
Eric Shields, Pharm.D.
Centers for Medicare and Medicaid Services (CMS) had announced on July 6th, 2007 that Medicaid must use the new Federal Upper Limit (FUL), the maximum amount states can pay pharmacies for generic Medicaid drugs, which will be based on 250% of the lowest generic medications AMP. This rule is part of the Deficit Reduction Act of 2005, mandating CMS to reduce Federal and State Medicaid costs by 8.4 billion dollars over the next 5 years.
Ever since CMS had announced their drastic cuts for Medicaid reimbursement, pharmacy associations including: NCPA, NACDS, APhA, NRHA, and MPA are pushing for Senator Baucus’s S.1951 AMP fix. NCPA and NACDS have even joined forces and filed suit against CMS for their AMP ruling. This is all for a good reason. The Government Accountability Office (GAO) identified the reimbursement on average is 36% less than the acquisition costs for generic medications. What this means is pharmacies may have to turn Medicaid patients away or close their doors trying to serve them. Tobey, Peter, and Gina are in DC to meet with NCPA then head to the Hill to speak with Senator Baucus, his staff, and maybe some members of the Senate Finance Committee in attempts to safeguard patient access to community pharmacies by giving their support for S.1951 and H.R.3700.
Senator Baucus had introduced S.1951 "The Fair Medicaid Drug Payment Act of 2007" on August 2nd, 2007. For the most part, this bill removes the outlying mail order acquisition costs from the mix on figuring AMP, uses Average AMP instead of Lowest AMP, and raises reimbursement from 250% to 300%. Please visit GrizRPh.com “In the Spotlight” for more information.
In addition, Representative Pallone had introduced H.R.3700 on October 28th, which is the companion bill to Senator Baucus's S.1951, also known as the "The Fair Medicaid Drug Payment Act of 2007" in the Senate. The two bills can be meshed easily and can save our pharmacies before the dreaded new AMP attacks pharmacies pocket books.
Jim Smith, Executive Director of the Montana Pharmacy Association explains, ‘this is where I figured we'd be around now with AMP legislation...S.1951 is the last realistic vehicle for getting anything done on AMP this session of Congress. That's why I felt strongly that I needed to go to DC in September...to beat the drum with my counterparts in other states, and with APhA (American Pharmacists Association) regarding AMP and S.1951. Both S.1951 and H.R.3700 are identical versions of AMP legislation in the Senate and the House and we have two committee chairs, both Senator Baucus, Chairman of the U.S. Finance Committee, and Representative Pallone, Chair of the Subcommittee on Health in the Energy and Commerce Committee, which has sole jurisdiction over Medicaid, sponsoring these bills which is key to our success in the next week or so.’
In addition, Jim Seifert, RPh, President of the Montana Pharmacy Association, asked Tobey Schule to hand deliver letters of support from MPA, in which you can read on GrizRPh News just above..Lets give a special thanks to Tobey, Peter, and Gina for their efforts in safeguarding patient access to community pharmacies. Hats off to all three of you…Thank you!
Eric Shields, Pharm.D.
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