Senate Commerce Committee Advances S. 4293 to Full Senate

This week, the Senate Commerce, Science & Transportation Committee advanced S. 4293, the Pharmacy Benefit Manager Transparency Act of 2022. This bill was approved on a 19-9 bipartisan vote and now heads to the full Senate. Sponsored by Sens. Maria Cantwell (D-Wash.) and Charles Grassley (R-Iowa), it empowers the FTC to increase drug pricing transparency and hold PBMs accountable for unfair and deceptive practices that drive up the costs of prescription drugs at the expense of consumers. NCPA endorsed the legislation which would ban deceptive unfair pricing schemes like spread pricing and prohibit arbitrary clawbacks of payments made to pharmacies. View NCPA’s press release here.

NCPA’s Belcher Talks PBM study with FTC Chair
and Members of Congress

This week, NCPA co-hosted a panel discussion on How PBMs Impact Drug Prices, Communities, and Patients, with the American Economic Liberties Project. NCPA President Michele Belcher and NCPA member Randy McDonough, co-owner of Towncrest Pharmacies in Iowa City, and Solon, Iowa, had the opportunity to discuss the new FTC 6(b) study on PBMs before an audience that included keynote speakers FTC Chair Lina Khan, Sen. Sherrod Brown (D-Ohio) and Rep. Buddy Carter (R-Ga.). Khan, Brown, and Carter all spoke to the harms caused by PBMs and the importance of grassroots engagement in shining a light on PBMs in Washington, DC. “We are so grateful to Chair Khan and the FTC for scrutinizing the anticompetitive behavior of PBMs,” said Belcher during the discussion. “My peers and I have been waiting for a long time for someone in Washington to take this seriously, and we are all delighted that it’s finally happening.” To continue to be involved in grassroots efforts consider scheduling to host your member of Congress during our month of action today by clicking here.

Next Week’s Webinar Will Provide a Guide
to Grassroots Action

NCPA is hosting a webinar on Tuesday, June 28 at 8:00 pm ET. This webinar will provide an overview of recent policy successes, legislative priorities and tips on being a more effective grassroots advocate in advance of the Month of Action in August. Thank you to our sponsors RxSafe, Pharmacists Mutual Insurance Company and Value Drug Company for their support of this important webinar.

NCPA is holding the Month of Action in lieu of a fly-in due to several factors that made a traditional fly-in unfeasible this year and is encouraging all NCPA members to invite their members of Congress to their pharmacy and engage with them in August. You can register for the webinar here. Please let NCPA know of and your interest in hosting a pharmacy during the Month of Action by completing this short form.

CMS To Implement 2% Payment Reduction
for Medicare Part B Drug Claims beginning July 1

CMS will implement a 2% payment reduction starting on July 1 to Medicare FFS claims due to sequestration. The 2% cut was scheduled to take place years ago, but it was delayed by the CARES Act in 2020. Drugs under Medicare Part B will be included. CMS is currently implementing a 1% payment reduction, in effect from April 1 until June 30. See the websites of Medicare A/B MACs Noridian, Novitas, CGS and FCSO for more details.

DSCSA Resources for Dispensers Now Available in One Place

As the Drug Supply Chain Security Act’s (DSCSA) November 27, 2023 interoperability deadline approaches, NCPA along with the American Pharmacists Association, American Society of Health System Pharmacists, Healthcare Distribution Alliance, National Association of Boards of Pharmacy, Partnership for DSCSA Governance and the Pharmaceutical Distribution Security Alliance developed a website to compile a range of resources for dispensers. It includes checklists, podcasts and webinars to ensure dispensers are prepared to comply with the law. It also provides an overview of DSCSA, key milestones (including when manufacturers, distributors and dispensers must provide and receive transaction information and statements in a secure, electronic, and interoperable manner) and DSCSA’s definition of a dispenser. New resources will continue to be added to the site as they become available. For more information, contact Rachel Newman, Associate Director, HDA Research Foundation.

Healthcare Distribution Alliance
Produces Diversion Fraud Report

This month, the Healthcare Distribution Alliance’s (HDA’s) Pharmaceutical Cargo Security Coalition (PCSC) published a report on a fraud scheme involving drug diversion. Distributors and pharmacies have been targets of diversion via a sophisticated “phishing” scam involving fraudulent telephone calls and/or emails, where scammers extract important account information and drug product from them. Drugs that are most recently targeted include anti-depressant, arthritis (including Otezla), blood thinning (including Eliquis and Xarelto), and HIV (including Descovy, Triumeq, and Ofefsey) drugs. The HDA report recommends a host of ways that pharmacies can protect themselves against scams, including ways to verify orders and protect account information. If your company has experienced a similar fraud incident or attempt, contact Chuck Forsaith of HDA’s PCSC at cforsaith@hda.org or (401) 623-1344.

NCPA Past President Bill Osborn Hosts
Meet and Greet Chris Schiller

This week, NCPA Past President Bill Osborn, along with his wife Jane and son Jack hosted 22 attendees for a pharmacy industry Meet and Greet for candidate Chris Schiller, who is running for Congress in Oklahoma’s Second District. Schiller, owner of Economy Pharmacy in Eastern Oklahoma is the immediate past president of the Oklahoma Pharmacists Association. Schiller is currently gearing up for a primary run this Tuesday, June 28th. If you would like the join Chris’s Pharmacy Steering Committee please contribute to Schiller’s campaign here. And spread the word to your friends and colleagues about his campaign! You can learn more about Schiller through his latest television ad or on his website, Facebook, and Twitter pages.

House Members ask GAO to Investigate Role of PBMs

Last week, House Education and Labor Committee Republican Leader Virginia Foxx (R-N.C.); Health, Employment, Labor, and Pensions Subcommittee Republican Leader Rick Allen (R-Ga.); and Representative Diana Harshbarger (R-Tenn.) sent a letter to U.S. Comptroller General requesting the Government Accountability Office (GAO) perform a study on the role of pharmacy benefit managers (PBMs) in the pharmaceutical supply chain. Specifically, the request asked for the GAO to look at the impact of PBMs on commercial health plans with a focus on three areas: how PBMs are reimbursed for services provided to commercial health plans; the impact of formulary design and rebates on health care spending; and if there is any ERISA fiduciary duty owed to health plans. Additionally, Rep. Harshbarger introduced a bill this Congress, H.R. 1829, the Pharmacy Benefit Manger Accountability Study Act of 2021 that directs the GAO to study the PBMs role in the supply chain.

NCPA Provides Statements on Compounding
at FDA Annual Listening Session

Last week, the FDA held a compounding listening session. This session was an opportunity for stakeholders to voice their views on compounding to the FDA. NCPA members Cheri Garvin and Steven Hoffart provided statements. Garvin’s statement focused on the onerous timeline in preparation for the Pharmacy Compounding Advisory Committee (PCAC) meeting earlier this month, insanitary conditions overreach, any future MOU, drug shortages, and adverse event reporting. Hoffart’s statement focused on concerns with GFI #256 and patient access to compounded hormone therapies. NCPA coordinated its statements with the Alliance for Pharmacy Compounding, American Pharmacists Association, and PCCA, and NCPA also submitted its own statement for the record.

NCPA Submits Comments to FDA on Opioid Mail Back
Envelope and Safe Education Proposed Program

This week, NCPA submitted comments to FDA on its proposed program regarding mail-back envelopes and education on safe disposal with opioid analgesics. NCPA asked FDA to not move forward with the proposals, or at the very least make them part of a strictly voluntary program, to minimize burden on pharmacies, to avoid redundancies with existing programs, and to address various concerns. NCPA also advocated for any program implemented to be accompanied by compensation for pharmacies, and that any waste/unused medication should not go back to pharmacies. Lastly, NCPA asked FDA to advise CMS to formally recognize pharmacists as providers eligible to furnish those opioid abuse reduction services in their scope of practice and claim reimbursement under Medicare Part B.

NCPA-Endorsed Opioid Education Program
Featured in Pharmacy Times

This week, Pharmacy Times published an article featuring the Opioid and Naloxone (ONE) program at the North Dakota State University (NDSU) School of Pharmacy. The program has recently been adopted by West Virginia Drug Intervention Institute, which plans to implement its NaloxONE West Virginia program to over 20 pharmacies in West Virginia. ONE provides continuing education for pharmacy professionals to prevent opioid misuse and overdose and demonstrates the important role of pharmacists in combating the opioid epidemic. NCPA supports the ONE program and NaloxONE West Virginia.

Florida PBM Bill Signed into Law

Florida Gov. Ron DeSantis (R) signed HB 357 into law. The act allows the pharmacy to file an appeal with the Agency of Health Care Administration if a pharmacy disagrees with the final report of a PBM audit and the Agency will help resolve the dispute. Additionally, the act gives the Agency greater enforcement authority to go after PBMs that are not complying with state law.

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.