Page 40
December 2005
The AC Phoenix
MEDICAID CUTS - A PRESCRIPTION FOR DISASTER
Continued from Page 1
drive down Medicaid prescription drug costs, whiie at the same
time maintaining the heaith care safety net on which so many people
depend,” said Dave Marley. “Instead, pharmacy is targeted for a dis
proportionate percentage of the proposed cuts,” he added.
Key issues
Medicaid pharmacy reimbursement
accounts for oniy 2 percent of Medicaid
spending. Yet nearly half ($4.7 billion) of the
proposed $10 billion in cuts come from
pharmacy
• Working with community pharmacists to
accomplish a modest, eight percent
increase in the use of generic drugs would
save $19 billion over five years, more
savings than produced by the proposed
budget cuts
• Changing the drug reimbursement
formula, as proposed, to Average
Manufacturer’s Price (AMP) would mean
that pharmacists would lose money for
every Medicaid prescription they dispense
• Proposed changes to the pharmacist’s
dispensing fee would discourage the pro
motion of cost saving generic medications
• Pharmacies dropping out of the
Medicaid program would reduce access to
care for needy patients and result in worse
patient outcomes, more trips to the
emergency room and higher costs
• Independent pharmacies and their
patients would be hit hardest by the cuts
since 27 percent of all prescriptions
dispensed by independents are for Medicaid prescriptions and 50
percent of all independents are in communities with populations under
20,000.
“Pharmacists will not be able to continue to participate in the
Medicaid program if they are losing money with every prescription they
dispense,” said Bruce Roberts, RPh., executive vice president and CEO
of the National Community Pharmacists Association (NCPA), Dave
Marley is a member of NCPA. “We urge members of Congress to work
with community pharmacists to develop a fair plan that will protect
patients’ access to care and help contain Medicaid costs,” Roberts
added.
The National Community Pharmacists Association (NCPA) represents
the nation’s community pharmacists, including the owners of more than
24,000 pharmacies. The nation’s independent pharmacies, independ
ent pharmacy franchises, and independent chains represent an $84
billion marketplace, dispensing nearly half of the nation’s retail
prescription medicines.
Beverly Graham, the owner of the Medicap Pharmacy that opened
September 2nd on Liberty Street and 14th Street, said the smaller
community pharmacys will be negatively impacted the most under the
current plan being considered by congress. We need patients
to contact their Senators and Representatives immediately to
express opposition to medicaid cuts. It will affect patients and
pharamcys alike.
7 am mostly concerned for my
customers who rely on us for
the delivery of their medication
such as the ones who live in
government assisted housing
and have no transportation.
If we are forced to drop these
plans that have such an
outrageous reimbursement
then these people's access to
their prescriptions is going to
be severely hindered.
We thank you for your
interest in this situation and
we hope that you notify your
congressmen and let them
know that trying to bottom-
doliar the pharmacies is not
the answer to their problem.
Health care costs will
sky-rocket if people have
limited access to
prescriptions."
Thank you again,
Ike Vlahos
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