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.
Recent Posts
-
60 percent of LTC pharmacies warn of closure amid major drug pricing changes
Facing deep losses on high-demand medications, 85% of long-term care pharmacies say they will limit essential services and 60% will close locations without changes to Medicare drug pricing efforts. Those are among the “unintended consequences” revealed in a Senior Care Pharmacy Coalition survey released Wednesday. The trade association has been increasingly vocal about pricing changes set to go into effect in January.
-
More than half of LTC pharmacies may close unless Congress takes action, group says
Up to 60% of long-term care pharmacies may have to close if Congress doesn’t intercede by January, according to a report released Wednesday by the Senior Care Pharmacy Coalition.
-
New SCPC Member Survey Shows More than Half of America’s LTC Pharmacies May Close Locations Without Congressional Action
The Senior Care Pharmacy Coalition, the leading national voice for the long-term care (LTC) pharmacy community which provides essential and legally required services for millions of seniors in nursing homes and assisted living facilities across the country, today released the results of a new member impact survey on the unintended consequences of Medicare Part D price negotiation policies included in the Inflation Reduction Act.
Stay in the Know
Get the latest news and updates on issues impacting the long-term pharmacy community.