Legislation Protecting Medicaid Patients
30-Mar-2007: ALEXANDRIA, Va., March 23 /PRNewswire-USNewswire/ -- The National Community Pharmacists Association (NCPA) and Minnesota Pharmacists Association (MPhA) applauded members of the Minnesota House Health and Human Services Policy Committee on Tuesday for approving H.F.1722, critical legislation that would help preserve Medicaid patient access to pharmacy services. The state legislation would increase dispensing fees for generic drugs in the Medicaid program, partially offsetting dangerous federal cuts to pharmacy reimbursement. Regulations slashing pharmacy reimbursement that are being finalized by the federal Centers for Medicare & Medicaid Services (CMS) are threatening to drive community pharmacies out of the Medicaid program, or even out of business.
In December, the Bush administration proposed $8.4 billion in federal Medicaid cuts over the next five years to help implement the Deficit Reduction Act. Medicaid is the joint federal-state program that provides health care to more than 50 million poor and disabled persons, more than half of whom are children. More than 90 percent of the cuts are expected to come from slashing community pharmacy reimbursement for generic prescriptions. Those cuts would result in pharmacists being forced to accept Medicaid reimbursement for generic drugs that is, on average, 36 percent below their acquisition cost, according to a recent Government Accountability Office study.
"The GAO findings demonstrate the devastating impact the proposed CMS rule would have on small independent pharmacies," said NCPA President John Tilley, RPh. "Medicaid cuts, combined with low and slow reimbursement under the Medicare Part D program, could force many pharmacies to close so that all patients lose access."
The Minnesota measure, which was introduced by Rep. Erin Murphy (DFL-St. Paul) at MPhA's request, would help protect patients' access to their community pharmacy by providing a $12.92 dispensing fee to pharmacists for generic medications, helping to offset the federal cuts and encourage the use of cost-saving generics. The current state-mandated dispensing fee is $3.65.
"When federal legislators saw the results of their short-sighted budget-cutting measures, they advised states to reconsider the dispensing fees paid to pharmacies under Medicaid," said Bruce Roberts, RPh, NCPA executive vice president and CEO. "Minnesota lawmakers have responded to that call, and H.F.1722 can help protect the sustainability of the state's community pharmacies, on which so many patients depend for their health care needs."
Key testimony was offered by Ken Dickson, a pharmacist from Golden Valley, Minn., along with pharmacy economist Dr. Stephen Schondelmeyer of the University of Minnesota's PRIME Institute and a member of the Minnesota Department of Human Services' Pharmacy Payment Reform Advisory Committee.
Legislation passed during the 2006 Minnesota legislative session established the Pharmacy Payment Reform Advisory Committee, which was tasked with studying the cost of dispensing and making recommendations to the legislature on how to adequately adjust reimbursement rates to pharmacies to cover the costs of dispensing. After factoring in all the costs associated with dispensing medication, the committee recommended the $12.92 figure.
The bill passed with amendments by voice vote and was referred to the Health Care and Human Services Finance Division Committee where it will be heard March 26.
A companion bill, S.F.1879, was introduced by in the Senate by Sen. Paul Koering (R-Fort Ripley) on March 13 and is currently awaiting review by the Health, Housing and Family Security Committee.
"In addition to averting an access crisis, in moving this bill forward, Minnesota legislators have taken a national leadership role in working toward the goal of transparency in health care costs," said Julie Johnson, executive vice president/CEO of the Minnesota Pharmacists Association. "Recognizing and paying pharmacists for their professional services, rather than bundling it with the drug product payment, is an important first step."
The National Community Pharmacists Association, founded in 1898, represents the nation's community pharmacists, including the owners of more than 24,000 pharmacies. The nation's independent pharmacies, independent pharmacy franchises, and independent chains dispense nearly half of the nation's retail prescription medicines.
The Minnesota Pharmacists Association, founded in 1883, represents approximately 2,000 pharmacists in Minnesota practicing in both community and institutional pharmacy settings. MPhA is dedicated to excellence in the health care delivery system, to the integrity of the drug distribution system and to promoting public health and education.
Source: Drug Newswire
