Rx gets a big win in Congress

MMR, August 11, 2008

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WASHINGTON -- Representatives of retail pharmacy in the food and drug trade classes have hailed Congress' enactment of pro-pharmacy legislation.

"This is a true victory for the patients served by community pharmacists across the country," says Food Marketing Institute vice president of pharmacy services Cathy Polley. "Patients can rest assured that access to their local pharmacist and needed medications remains in place."

The law delays until September 30, 2009, the implementation of Medicaid prescription reimbursement cuts. Government, academic and industry studies found that the average manufacturer price (AMP) formula behind the cuts would cause pharmacies to lose money when they dispense generic drugs. Studies found that this could lead to the closure of 11,000 pharmacies, the loss of 300,000 jobs and $31 billion in lost economic activity nationwide.

"America's 23,000 community pharmacies have just been given the prescription for success in the health care marketplace," Bruce Roberts, executive vice president and chief executive officer of the National Community Pharmacists Association, said of Congress' override of President Bush's veto of the legislation. "The passage of this bill will guarantee community pharmacies the ability to help millions of patients while competing on a level playing field.

"The road ahead for health care is long and winding, but with the help of a U.S. House and Senate committed to patient access, community pharmacy will continue to prosper as a critical member of the health care community."

National Association of Chain Drug Stores president and CEO Steve Anderson calls the veto override a watershed for pharmacies and patients. By enacting top pharmacy priorities, Congress showed an appreciation for patient/pharmacist relationships and the significance of preserving access to medications and pharmacy services, he adds.

The House (383-41) and the Senate (70-26) both voted overwhelmingly last month to override the veto. More than 150 Republican House members and 21 GOP senators defied the president.

In addition to the AMP postponement, the statute encourages electronic prescribing in Medicare, protects patient access to diabetes supplies and ensures prompt payment of Medicare Part D pharmacy claims.

Anderson thanked NACDS members for their advocacy on the issue.

He also commended Senate Finance Chairman Max Baucus (D., Mont.), House Energy and Commerce Chairman John Dingell (D., Mich.), House Ways and Means Chairman Charles Rangel (D., N.Y.) and Rep. Frank Pallone (D., N.J.) for their leadership.

"We'd also like to thank the many Republican lawmakers who put the needs of patients first, helping to reduce long-term health care costs and taking the tough vote to support this important legislation," adds Anderson. "Their commitment to enacting pro-pharmacy legislation has made this an extraordinary victory for our nation's health care."

The veto override was assured earlier last month when Edward Kennedy made a surprise appearance in the Senate. With the backing of the Massachusetts Democrat, who came to the Capitol for the first time after brain surgery in June, and with nine Republicans who had opposed the bill's consideration switching their votes, the legislation passed 69 to 30.

Kennedy had been absent when supporters fell one vote short of advancing the bill in June.

Few Democrats knew he was coming back until minutes before the vote, and Republicans were outflanked.

The nine Republicans who switched their votes to give the measure a veto-proof majority were John Cornyn and Kay Bailey Hutchison of Texas, Saxby Chambliss and Johnny Isakson of Georgia, Lamar Alexander and Bob Corker of Tennessee, Mel Martinez of Florida, Arlen Specter of Pennsylvania, and John Warner of Virginia.

Sen. John McCain (R., Ariz.), who was absent, said on the campaign trail that Democrats were playing politics and that he opposed the bill.

The veto-proof vote for the legislation, which blocks a cut in Medicare payments to physicians as well as bolstering pharmacy, also came after a barrage of prolegislation ads from doctors.

NACDS' Anderson says the bill prevents retailers "from facing the untenable situation of having to accept below-cost payments when serving low-income patients."

"The biggest winners in this vote are the low-income Americans in rural and inner-city areas whose pharmacies are most likely to close," adds Polley.