House Energy & Commerce Consumer Protections
Subcommittee Holds FTC Hearing
On Wednesday, the House Energy and Commerce Committee’s Subcommittee on Consumer Protection and Commerce held a hearing entitled, "Transforming the FTC: Legislation to Modernize Consumer Protection." The legislative hearing allowed members to question all Federal Trade Commission (FTC)commissioners. In opening remarks, Commissioner Rohit Chopra testified how independent community pharmacies, which have played a vital role during the COVID-19 pandemic, are at the mercy of PBM middlemen that use tactics to drive the pharmacies out of business and emphasized the need for reforms to ensure the agency is more responsive to small businesses.
Senate Judiciary Committee Executive Business Meeting
Considers Grassley Drug Pricing Bill
On Thursday, the Senate Judiciary Committee held an Executive Business Meeting to consider several pieces of legislation and nominations. Among the bills considered was S. 1388, the Prescription Pricing for the People Act of 2021, which is sponsored by Sens. Charles Grassley (R-Iowa) and Maria Cantwell (D-Wash.). The NCPA endorsed legislation would require the FTC to examine the effects of PBM consolidation and vertical integration on drug pricing, as well as anticompetitive PBM practices, and provide policy recommendations to Congress to improve competition and protect consumers. The Committee advanced the legislation on a voice vote, and Chairman Dick Durbin (D-Ill.), along with Sens. Chris Coons (D-Del.) and Cory Booker (D-N.J.), all requested to be added as cosponsors to the legislation. This legislation was also advanced by the committee last Congress but was never considered on the Senate floor. NCPA will continue to advocate for its passage.
NCPA to Congress: Prohibit Spread Pricing
in Infrastructure Package
As legislators negotiate an infrastructure package, NCPA is urging them to include language to stop abusive PBM spread pricing and related practices in Medicaid managed care, improve transparency, and reasonably reimburse pharmacies. Currently, PBMs can overbill Medicaid managed care programs, under-reimburse pharmacies for medications dispensed, and retain the difference, which is referred to as the “spread.” NCPA supports language that would ban spread pricing for purposes of claiming federal matching payments under Medicaid and require PBMs to reimburse pharmacies with an ingredient cost and a professional dispensing fee no less than the professional dispensing fee under the fee-for-service program. Read NCPA’S letter to the chair and ranking member of the Senate Finance Committee.
NCPA Cheers Administration Decision
to Examine Antitrust Issues
In a letter to the National Economic Council, NCPA CEO Douglas Hoey expressed appreciation for the Biden administration’s pledge to examine mergers that have negatively affected consumers and community pharmacy. NCPA has long urged a thorough examination of mergers and contracts that trample on consumer rights and hurt community pharmacy. “President Biden’s focus on anticompetitive corporate behavior is a breath of fresh air and long overdue,” Hoey said. “NCPA and the independent pharmacies we represent appreciate the administration’s increased attention on consolidation and lack of enforcement.” In a separate letter to HHS Secretary Xavier Becerra, Hoey explained the urgency of fixing pharmacy DIR fees. Read the letter to the White House, the letter to Becerra, and an NCPA press release on the letters.
NCPA Joins Forces in Response to Executive Order
on Competition
This week, NCPA signed onto a letter expressing support for President Biden’s Executive Order on Promoting Competition in the American Economy. Additionally, NCPA provided comments to the White House (described above) on the ongoing anticompetitive behaviors of the PBMs as well as the requirements for the development of any workable potential drug importation policy. NCPA looks forward to continuing to work with the Biden Administration to implement policies and guidelines to enable small businesses to remain competitive in the marketplace.
NCPA Signs onto Letter Opposing
Treasury Department Proposal
In a letter to Congressional leadership, NCPA signed onto a letter with multiple organizations representing small businesses opposing a Treasury Department proposal that would require financial institutions to report to the IRS on the deposits and withdrawals of all business and personal accounts, as well as transfers between accounts of the same owner. In the letter, NCPA urges Congress to reject the Treasury proposal and explore less intrusive means of reducing the tax gap.
Opportunity to Partner with Rural Health Clinics
to Increase COVID-19 Vaccinations
The Department of Health and Human Services (HHS) has provided nearly $100 million to more than 1,980 Rural Health Clinics (RHCs) nationwide for outreach to increase COVID-19 vaccinations in rural communities.
If you are interested in this opportunity to partner with an RHC to increase COVID-19 vaccinations, go to the HRSA grant website and under the search bar: 1) select “Rural Health” under “Program Areas” 2) select “Rural Health Clinic Vaccine Confidence Program (G29)” 3) select your state, and then 4) click “Submit.” A list of RHCVC Program grant recipients will then appear, with contact details to the far right. Please reach out directly to your local RHC to inquire about opportunities to partner with them.
Coalition Requests HHS Extend the Part D EMTM
and Adoption of Flexibilities to Part D
On July 28, 2021, a coalition of organizations across the healthcare spectrum, including NCPA, sent a letter urging Secretary Becerra to extend the Enhanced Medication Therapy Management Model (EMTM) beyond the expiration date of December 31, 2021 and to apply key flexibilities developed under the model to other Part D plans. Since the creation in 2017, the model has enabled collaboration between plan sponsors, pharmacists, and primary care providers to promote interdisciplinary services to improve health outcomes and lower costs through Comprehensive Medication Management (CMM).
NH Governor Signs Prescription Home Delivery
Protection Bill into Law
New Hampshire Governor Chris Sununu signed SB 97 into law. The bill prohibits a PBM from prohibiting in-network pharmacies from offering prescription home delivery services.
NAIC moves to add Rutledge decision to “ERISA Handbook”
Acknowledging the significance of the U.S. Supreme Court decision in Rutledge v. PCMA, the National Association of Insurance Commissioner’s (NAIC) ERISA Working Group plans to add a summary and analysis of the decision to its “Health and Welfare Plans Under the Employee Retirement Income Security Act: Guidelines for State and Federal Regulation” publication, informally known as the “ERISA Handbook.” The Handbook contains guidelines for state and federal regulation of ERISA plans and includes analyses of seminal Supreme Court decisions addressing preemption and states’ authority to regulate ERISA plans. NAIC staff is currently working on a first draft of the analysis to be included in the Handbook and will invite comments on the draft. NCPA, which has been working with NAIC on PBM Model Legislation and other PBM issues for over two years, will submit comments to the Working Group once the draft has been made public.
Invite Your Legislator to Visit Your Pharmacy
During the Upcoming August Recess
Congress is currently scheduled to be in recess July 31-September 8 for the annual August recess. This is an ideal time to invite your member of Congress to tour your pharmacy and urge their support for pro-pharmacy and pro-patient legislation such as for S. 1909/H.R. 3554, the Pharmacy DIR Reform to Reduce Senior Drug Costs Act. Click here for tips on scheduling a pharmacy visit or contact Michael Rule at mrule@ncpa.org for assistance.
Join Us in Charlotte, N.C. for the NCPA
2021 Annual Convention
If you have not yet done so, register for the in-person NCPA 2021 Annual Convention in Charlotte, N.C. from Oct. 9-12. Don’t miss the chance to reconnect with your colleagues for four days of best-in-class business education, networking opportunities, and a little fun in Charlotte. We look forward to seeing you there.
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. Click each issue for a report 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. The weekly update is intended exclusively for the recipient and is not for external distribution.