Secretary of Public Welfare Corrects the Record on 'Smart Pharmacy' Initiative

HARRISBURG, Pa., May 27 /PRNewswire-USNewswire/ -- Secretary of Public Welfare
Estelle B. Richman today responded to critics of the Smart Pharmacy
initiative, saying the plan would save taxpayers $146 million annually while
preserving consumer benefits and simplifying the pharmacy initiative for
providers.

"The savings from the Smart Pharmacy initiative are real, not speculative,"
said Secretary Richman. "This is not a drill. Pennsylvania is facing a budget
shortfall now and the savings from Smart Pharmacy will help us maintain
Medical Assistance services for every low-income, disabled Pennsylvanian who
relies on the initiative, rather than drain the system as some have
suggested."

Richman went on to say that 21 other states have implemented initiatives like
Smart Pharmacy, resulting in great savings for their taxpayers. The department
currently pays for pharmacy services for over 800,000 individuals enrolled in
the Medical Assistance Fee-for-Service initiative, with proven positive
results.

"Consumers will not be affected by the implementation of Smart Pharmacy," said
Richman. "The initiative will provide the same access to prescription drug
coverage for the same consumers, while allowing managed care organizations to
receive the most up-to-date pharmacy information."

Currently drug purchases are split between seven Medical Assistance managed
care organizations, which by federal law are not eligible to receive rebates
available to states. Becoming the single purchaser of medications for the
Medical Assistance program will allow Pennsylvania to receive discounts that
are seven times greater than those available to the managed care companies,
saving taxpayers $146 million annually.

"The bottom line is that this initiative will save the commonwealth and
taxpayers much needed dollars," said Secretary Richman. "With a budget as
difficult as we are seeing this year, we can no longer afford to leave such a
significant savings on the table."

CONTACT: Stacey Witalec
(717) 787-4592

SOURCE Pennsylvania Department of Public Welfare

Stacey Witalec of the Pennsylvania Department of Public Welfare,
+1-717-787-4592