NCPA Advocacy Update

Week ending Oct. 18

Author: APCI Staff/Monday, October 21, 2019/Categories: Legislative Affairs

Energy and Commerce Committee advances
Speaker Pelosi’s drug pricing bill

This week, the House Energy and Commerce Committee advanced on a party-line vote Speaker Nancy Pelosi’s (D-Calif.) drug pricing legislation, H.R. 3, the Lower Drug Costs Now Act. Chairman Frank Pallone (D-N.J.) offered an amendment that updated a number of provisions in the original draft, including the addition of standardized quality metrics to be used for pharmacy DIR fees that mirrors language in the Senate Finance package. Additionally, Rep. Peter Welch (D-Vt.) offered an amendment to prohibit retroactive pharmacy DIR fees, which was cosponsored by Reps. David Loebsack (D-Iowa), G.K. Butterfield (D-N.C.), and Kurt Schrader (D-Ore.). The amendment highlighted the 45,000% increase in pharmacy DIR fees and the resulting closure of 4% of our nation’s pharmacies over the last year.

Additionally, Republican pharmacy champions Reps. Morgan Griffith (R-Va.), Buddy Carter (R-Ga.) and John Shimkus (R-Ill.) expressed support for protecting independent community pharmacies from these harmful fees from PBMs. Both Democrat and Republican members expressed serious concern that community pharmacies will continue to close, which would create serious access issues for patients, if pharmacy DIR fees are not reformed. The Committee’s Ranking Member Greg Walden (R-Ore.) expressed his support for the amendment, which was ultimately withdrawn, and for working with Chairman Pallone on a bipartisan measure to address pharmacy DIR fees.


Ways and Means Committee drug pricing hearing
focuses on H.R. 3

This week, the House Ways and Means Committee held a hearing entitled, “Investing in the U.S. Health system by lowering drug prices, reducing out-of-pocket costs, and improving Medicare benefits.” The hearing focused on H.R. 3, the Lower Drug Costs Now Act. Democratic Members generally emphasized how H.R. 3 will lower prescription drug prices in Medicare and the commercial market, improve affordability of medicine, and reduce costs for patients and taxpayers.  Republican members strongly disagreed with the mechanisms used in H.R. 3, including direct government negotiation and international reference pricing. NCPA submitted a statement for the record highlighting the need to reform pharmacy DIR fees as a part of the drug pricing package.

The hearing occurred the same day that the Energy and Commerce and Education and Labor Committees advanced H.R. 3, as amended, to the full House of Representatives along party line votes. The Ways and Means Committee is scheduled to hold their markup of the bill on October 22, which is the final hurdle before the bill could receive floor consideration.


Survey says addressing pharmacy DIR fees
essential to community pharmacy survival

More than 600 community pharmacy owners responded to a survey conducted by NCPA to get a sense of their economic priorities and concerns, and the results painted a grim picture. 58% of respondents believe they are at least somewhat likely to close their pharmacy in the next two years if things do not improve where 63% identified pharmacy DIR fees as their primary concern. This survey reinforces the need to address pharmacy DIR fees now and NCPA will continue to work with our both our Congressional and industry allies to do so. Full results of the survey are available here and you can view NCPA’s news release on the subject here.


NCPA discusses community pharmacy
at Robert Wood Johnson Foundation

This week, Kala Shankle, Director of Policy and Regulatory Affairs, spoke on a panel in front of fellows for the Robert Wood Johnson Foundation. Shankle was joined on the panel by representatives from APhA, PCMA and PhRMA and the discussion was intended to acclimate RWJ fellows to the issues and players that are important in the healthcare and drug pricing space. NCPA presented on problems facing community pharmacists and upcoming legislative proposals on the Hill, including those that address pharmacy DIR fees and spread pricing in Medicaid managed care.


NASEM asks NCPA for compounding expert nominations

As reported in previous NCPA communications, the National Academies of Science, Engineering and Medicine (NASEM) is conducting two FDA-funded consensus studies related to compounded bioidentical hormone replacement therapy (cBHRT) and compounded topical pain creams. NASEM asked NCPA, along with other groups experienced in compounding, for nominations for speakers and external reviewers to help inform the development of these two studies. NASEM’s request comes in response to a joint letter from NCPA, thIACP, and APhA that requested NASEM to consider input from expert practitioners and compounding pharmacists while conducting the studies. Our organizations are pleased that we are able to provide our expertise to help inform NASEM’s consensus studies related to compounded drug products and will continue to engage with NASEM to ensure continued patient access to cBHRT and compounded topical pain creams.


LTC stakeholders ask CMS to recognize
medical at home services

NCPA and multi-disciplined long-term care (LTC) stakeholders wrote a letter to CMS to bring attention to the value of LTC pharmacists in providing medical at home services. The stakeholders urged CMS to recognize medical at home pharmacy services and issue guidance formally recognizing these services at the same level as other LTC services to meaningfully address the increasing aging population who require assistance with activities of daily living.


NCPA state legislative activity update

NCPA tracks state legislation related to our top three state priorities: Medicaid reform, scope of practice and compensation for services, and PBM reform and regulation. Linked below are reports of bills that have been introduced so far this session specifically dealing with these three issue areas. You can access the individual bill language and basic information on the bill by clicking on the bill numbers in the attached report. Bills that have moved this week are listed at the top in the “Recently Updated” section.


NCPA’s Advocacy Center Update provides a weekly detailed summary of recent and breaking legislative, regulatory, and state developments impacting independent community pharmacy and NCPA’s efforts to affect policies benefitting its membership and the industry. The weekly update is distributed to NCPA leadership, steering committees, allied organizations/stakeholders and major contributors to the NCPA LDF and PAC.

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