Study Indicates Strong Consumer Preference to Fix Medicare Part D and Medicaid Flaws...

Study Indicates Strong Consumer Preference to Fix Medicare Part D and Medicaid
Flaws Threatening Access to Prescription Drugs

ALEXANDRIA, Va., Dec. 18 /PRNewswire-USNewswire/ -- Patients believe that
access to their prescription medications for government health care programs
should not be compromised by unfair reimbursement practices and policies to
their community pharmacy providers, according to a new survey from the polling
company(TM), inc.

"Our patients have it right: they know community pharmacies play a critical
role in their health care," said Stephen Giroux, PD, NCPA president and owner
of five pharmacies in Western New York. "They want us there to address their
health care needs. Now Congress needs to heed their request and pass specific
Medicare and Medicaid reimbursement fixes before more local pharmacies are
forced out of these government programs, or have to close their doors."

The Coalition for Community Pharmacy Action--comprised of the National
Community Pharmacists Association (NCPA) and National Association of Chain
Drug Stores (NACDS)--commissioned the polling company(TM), inc., to conduct a
comprehensive survey of 1,000 pharmacy patients nationwide from November 26 -
December 2, with a margin of error of (+/-) 3. From a legislative perspective,
the level of patient support for fixing the current slow reimbursement of
Medicare Part D prescription drugs by the pharmacy benefit managers (PBMs)
that administer the plans, and the forthcoming cuts in the reimbursement of
Medicaid generic prescription drugs was resounding.

The survey found 83 percent of respondents said it was unfair that "PBMs and
prescription drug plans keep money as long as possible, allowing them to earn
interest on it, while pharmacies must continue to provide their services and
prescription drugs upfront to patients even though they haven't been paid."
The survey also found 83 percent support "new legislation in Congress to
ensure pharmacies providing Medicare Part D patients are reimbursed by the
government within 14 days."

Slow pharmacy reimbursement of Medicare Part D prescription drug claims by
PBMs cause cash flow problems for community pharmacies that force them to take
out loans in the tens to hundreds of thousands of dollars range. The bills -
H.R.1474, the Fair and Speedy Treatment of Medicare Prescription Drug Act of
2007, and S.1954, the Pharmacy Access Improvement Act (PhAIM) of 2007?require
complete and accurate Part D claims submitted electronically be paid within 14
days by electronic funds transfer, and paper claims within 30 days.

In addition, the survey found 78 percent thought it was unfair that "under the
new rule, pharmacies that participate in the Medicaid program would have to
sell generic drugs at a loss." The survey also found 78 were less likely to
support the new rule because "many community pharmacies will not be able to
continue servicing Medicaid patients, including children," especially after
they learn "over 28 million children in the U.S. get prescription medications
paid for by the Medicaid and account for over half of the beneficiaries."
Furthermore, the survey found 74 percent support legislation that would
reimburse pharmacy more fairly.

The Centers for Medicare & Medicaid Services' (CMS) Medicaid generic
prescription drug pharmacy reimbursement formula is based on a flawed Average
Manufacturer Price (AMP). According to a Government Accountability Office
study, on average community pharmacies will be reimbursed at least 36 percent
below their acquisition costs when the change is fully implemented in early
2008. While the legislative solutions are slightly different in the House and
Senate, the goal of limiting the damage AMP would have on community pharmacies
is the same. H.R.3140, the Saving Our Community Pharmacies Act, establishes a
new and fair pharmacy reimbursement benchmark reflective of what the actual
retail costs are and includes provisions to drive generic drug utilization
that increase taxpayer savings. While S.1951, the Fair Medicaid Drug Payment
Act of 2007, is focused on improving the AMP formula criteria for determining
the averages and raises the maximum amount of potential reimbursement.

"We have reached critical mass in our efforts to rectify the debilitating
consequences of the Medicare Part D and Medicaid reimbursement systems," said
Bruce Roberts, RPh, NCPA executive vice president and CEO. "The sentiments
expressed by community pharmacies, members of Congress, and organizations such
as NCPA and the National Rural Health Association are well known. The missing
voice has been the patients who are adversely affected by the consequence of
community pharmacies being squeezed to the breaking point. Now we have a
comprehensive scientific survey indicating patients find the reimbursement
policies objectionable and are supportive of the pending legislative solutions
that should spur action in the halls of Congress."

The National Community Pharmacists Association, founded in 1898, represents
the nation's community pharmacists, including the owners of more than 23,000
pharmacies. The nation's independent pharmacies, independent pharmacy
franchises, and independent chains dispense nearly half of the nation's retail
prescription medicines. To learn more go to www.ncpanet.org.

SOURCE National Community Pharmacists Association

John Norton, Public Relations Manager of NCPA, +1-703-683-8200,
john.norton@ncpanet.org