Senior Care Pharmacy Coalition & “Save Senior Rx Care” Release Statement on Biden Administration’s Medicare Drug Pricing Announcement

DATE: August 15, 2024

The Senior Care Pharmacy Coalition (SCPC), the leading national voice for the long-term care pharmacy community, and the new Save Senior Rx Care campaign released a statement today in response to the new drug pricing announcement: 

“Today, the Biden Administration released the negotiated 2026 prices for the ten most expensive Medicare Part D drugs, as required by the Inflation Reduction Act (IRA). Lowering drug prices for seniors – and for all Americans – is an important goal, and today’s announcement is a positive sign for seniors.  Further action is needed, however, to ensure that the more than two million seniors who need long-term care (LTC) retain access not only to affordable prescription medications, but also to essential and legally required LTC pharmacy services.  

“The LTC pharmacy community supports lower drug prices for seniors. However, the lower prices will become effective against the backdrop of a perverse Medicare Part D reimbursement model that is driven by the increasingly abusive practices of pharmacy benefit managers (PBMs). PBMs reimburse LTC pharmacies roughly 25% of the costs necessary to provide legally required services essential to quality care for Medicare beneficiaries who need LTC. This forces LTC pharmacies to rely on revenues from high-cost drugs to remain financially viable. Congress must quickly to address the unintended consequences of the IRA and the harmful actions of pharmacy benefit managers (PBMs) that collectively put many LTC pharmacies and the patients they serve in jeopardy.  

“So far, we know that prices were cut in half for nine of the ten affected drugs, and that eight of the ten are frequently prescribed to Medicare beneficiaries who need LTC. Given the broken Medicare Part D reimbursement system that allows PBMs to force LTC pharmacies to rely on high-cost drugs to remain in business, action must be taken to protect LTC pharmacies and the more than two million seniors and others who rely on them. These concerns are particularly acute for seniors in rural communities and medically underserved areas, as well as smaller pharmacies that represent more than 90% of LTC pharmacies in the country.

“Our financial impact studies predict these cuts will make it difficult for many LTC pharmacies to remain in business and serve the unique needs of their patients. That is why we launched the Save Senior Rx Care campaign to ensure that seniors and their care will not suffer from these unintended consequences. We know that Congress and CMS want to avoid hurting pharmacies, and we are already seeing promising signs that Congress will address this issue before the negotiated prices take effect on January 1, 2026,” said Alan Rosenbloom, President and CEO of SCPC and champion of the Save Senior Rx Care campaign. 

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