National LTC Pharmacy Advocacy Group: Explosion of PBM DIR Fees Squeezes Elderly Patients and LTC Pharmacies Who Serve Them
FOR IMMEDIATE RELEASE
February 19, 2020
Washington, DC – The Senior Care Pharmacy Coalition (SCPC) today said a new analysis from XIL Consulting finding post-point-of-sale direct and indirect remuneration (DIR) transaction fees paid by pharmacies to pharmacy benefit managers (PBMs) and prescription drug plans (PDPs) rose by 1600% since 2013 helps renew attention on a previous CMS report finding DIR fees grew 45,000% from 2010-2017.
“This timely new report details yet another outlandish data point that should prompt renewed attention from lawmakers seeking to untangle the deceptive web of prescription drug pricing schemes employed by unaccountable middlemen,” stated Alan G. Rosenbloom, President and CEO of SCPC, the only Washington-based organization exclusively representing the interests of LTC pharmacies and the elderly patients they serve.
“It is our position that DIR fees are a windfall profit for PBMs and PDPs, and should be abolished – not reformed,” Rosenbloom continued. “The shocking continuation of astronomical DIR fee hikes throughout most of the past decade reiterates that elderly patients and the LTC pharmacies who serve them deserve systemic relief and reform.”
The SCPC President and CEO observed that DIR fees impact pharmacy markets differently, which drives different responses within the sector. “The unique nature of LTC pharmacies, the elderly patients they serve — and the fact they provide clinical and supportive services retail and other pharmacy groups do not — requires evaluating the regulatory landscape through a different, LTC pharmacy-specific prism,” he concluded.
The Senior Care Pharmacy Coalition (SCPC) is the only national organization exclusively representing the interests of LTC pharmacies. Its members operate in all 50 states and serve 850,000 patients daily in skilled nursing and assisted living facilities across the country. Visit seniorcarepharmacies.org to learn more.
Senior Care Pharmacy Coalition Applauds Chairman Comer and House Oversight Committee for Shedding Light on Harmful PBM Practices, Encourages Congress to Advance PBM Reform Legislation Heard Today in House Energy and Commerce Committee Health Subcommittee
The Senior Care Pharmacy Coalition (SCPC), the leading national voice for the long-term care pharmacy community, released a statement today regarding the House Oversight Committee’s hearing on pharmacy benefit managers.
Stuck in the middle, LTC pharmacies could be dangerously squeezed by drug price negotiations
Any lower drug prices that result from White House efforts to negotiate on behalf of Medicare beneficiaries may lead to short-term gains for nursing homes, but there also could be a steep price to pay in the long-term, experts warned this week. The Centers for Medicare & Medicaid Services on Tuesday announced the first 10 drugs covered by Medicare Part D that will be included in negotiations running through 2024. They are all commonly prescribed drugs that treat conditions ranging from diabetes to arthritis and heart failure.
Biden’s Plans to Reduce Cost of Medicare Drugs To Send Ripple Effects Through Nursing Home Industry
Following the Biden Administration’s bid this week to reduce the price of certain drugs – many of which are commonly used in nursing homes – experts are cautioning that the changes may negatively impact the bottomline of organizations in the sector. As Medicare Part D price negotiations for these drugs come into focus this week, the Senior Care Pharmacy Coalition (SCPC), for one, is warning that changes to Part D might cause “collateral damage” to long-term care pharmacies, the patients they serve and operator partners.
Stay in the Know
Get the latest news and updates on issues impacting the long-term pharmacy community.