Broad Support Emerges for Proposed Ban on Retroactive DIR Fees

ALEXANDRIA, Va., Sept. 26, 2016 /PRNewswire-USNewswire/ -- A wide array of 99 pharmacy stakeholders recently wrote to the sponsors and original co-sponsors of S. 3308/H.R. 5951, the Improving Transparency and Accuracy in Medicare Part D Spending Act, praising their leadership for introducing these companion bills and strongly endorsing the legislative measure which would rein in retroactive direct and indirect remuneration (DIR) fees imposed by pharmacy benefit managers (PBMs) in Medicare Part D.

The letter brings together a host of pharmacy providers and partners, including wholesalers, grocery stores, buying groups, regional chain pharmacies, and 40 state pharmacist associations along with independent community pharmacies and franchisees.

"Retroactive DIRs, often assessed weeks or even months after a prescription has been filled, prevent pharmacies from knowing at the time of dispensing what their true reimbursement will be for that prescription," the signatories wrote in their letter. "Such lag time creates an unnecessary burden on pharmacy operations and makes it very difficult to make decisions for the future."

The letter further highlighted that the proposed legislation strikes a balance between increasing transparency and not increasing costs: "Furthermore, it successfully achieves greater transparency without raising costs in Medicare Part D while not interfering with the ability of PBMs to create incentive-based payment models that reward pharmacies for achieving contractual-based metrics."

The signatories also cautioned that DIR fees not accounted for at point of sale have an adverse effect on Medicare beneficiaries, "…DIR fees that are not accounted for upfront inflate drug costs at the pharmacy counter, and therefore beneficiary cost sharing."

NCPA appreciates all the organizations who joined this letter and voiced their strong support for S. 3308/H.R. 5951 and echoes their call for quick Congressional passage of these companion bills.

Click here for the Senate version and here for the House version of the letter.

The following organizations were signatories:

Academy of Independent Pharmacy/Georgia Pharmacy Association
Alabama Pharmacy Association
Alaska Pharmacists Association
Alliance of Independent Pharmacies of Texas
American Pharmacists Association
American Pharmacy Cooperative, Inc.
American Pharmacy Services Corporation
American Associated Pharmacies
AmerisourceBergen
Arizona Pharmacy Association
Arkansas Pharmacists Association
Astrup Drug
Bartell Drugs
California Pharmacists Association
CARE Pharmacies Cooperative Inc.
Colorado Pharmacists Society
Compliant Pharmacy Alliance Cooperative
Connecticut Pharmacists Association
Dakota Drug, Inc
Discount Drug Mart
Federation of Pharmacy Networks
Florida Pharmacy Association
Food Marketing Institute
Fruth Pharmacy Inc.
Georgia Pharmacy Association
GeriMed, Inc.
Hartig Drug Co., Inc.
H. D. Smith
Hi-School Pharmacy Services
Hometown Pharmacies
Illinois Pharmacists Association
Independent Pharmacy Alliance
Independent Pharmacy Buying Group Inc.
Independent Pharmacy Cooperative
International Academy of Compounding Pharmacists
Iowa Pharmacy Association
Kansas Independent Pharmacy Service Corporation
Kansas Pharmacists Association
Kentucky Pharmacists Association
Keystone Pharmacy Purchasing Alliance
Kinney Drugs, Inc.
Kmart
Louisiana Independent Pharmacies Association
Louisiana Pharmacists Association
Maryland Pharmacists Association
Massachusetts Independent Pharmacists Association
Medicine Shoppe / Medicap
Michigan Pharmacists Association
Minnesota Pharmacists Association
Mississippi Independent Pharmacies Association
Missouri Pharmacy Association
Montana Pharmacy Association
Morris & Dickson Co., LLC
Mutual Wholesale Drug Co.
National Alliance of State Pharmacy Associations
National Community Pharmacists Association
National Grocers Association
Nebraska Pharmacists Association
New Jersey Pharmacists Association
New Mexico Pharmacists Association
North Carolina Association of Pharmacists
ND Pharmacists Association
ND Pharmacy Service Corporation
Northeast Pharmacy Service Corporation
Ohio Pharmacists Association
Oklahoma Pharmacists Association
Oregon State Pharmacy Association
Osborn Drugs
PACE Alliance
PARD, an Association of Community Pharmacies 
PBA Health
PCCA
Pennsylvania Pharmacists Association
Pharmacists Society of the State of New York
Pharmacist Society of Wisconsin
Pharmacists United for Truth and Transparency
Pharmacy Franchisees and Owners Association
PPOk
PPSC
QualityCare Pharmacies
RDC
Ritzman Pharmacy
Rx Plus
Smart-Fill
South Carolina Pharmacy Association
South Dakota Pharmacists Association
Southern Pharmacy Cooperative
Tennessee Pharmacists Association
Texas Pharmacy Association
Texas Pharmacy Business Council
Texas TrueCare Pharmacies
Third Party Station
Utah Pharmacy Association
Value Drug Company
Virginia Pharmacists Association
Washington DC Pharmacy Association 
Washington State Pharmacy Association
West Virginia Pharmacists Association
Western States Pharmacy Coalition

The National Community Pharmacists Association (NCPA®) represents the interests of America's community pharmacists, including the owners of more than 22,000 independent community pharmacies. Together they represent an $81.4 billion health care marketplace and employ more than 314,000 individuals on a full or part-time basis. To learn more, go to www.ncpanet.org, visit facebook.com/commpharmacy, or follow NCPA on Twitter @Commpharmacy.

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SOURCE National Community Pharmacists Association