E-Prescribing in Medicare Could Prevent Up to 1.9 Million Medication Errors

(Washington, DC)—A new report that finds millions of Americans are either using their prescription medications incorrectly—or not taking them at all—underscores the importance of promoting electronic prescribing (e-prescribing) in Medicare, the Pharmaceutical Care Management Association (PCMA) said today.

According to the report from the National Council on Patient Information and Education slated for release later this week, patients not experiencing acute symptoms are less likely to stick with their medications. For example, just 51 percent of patients with high blood pressure stick with their medications, according to the report.

“Today, 20 percent of prescriptions go unfilled,” said PCMA President Mark Merritt. “E-prescribing improves medication adherence by providing physicians with information on each patient’s medication history and more affordable prescription options. This real-time information allows the physician to know which medications the patient is actually taking, counsel them on the importance of sticking with their therapies, and discuss more affordable options if cost is an issue.”

Several published studies show that the clinical decision support information provided by e-prescribing systems can help doctors to significantly increase patient adherence. For example, one study showed that providing doctors with clinical decision support helped boost the medication compliance rate for patients with high cholesterol from 50 percent to 90 percent.1

As part of its e-prescribing campaign, PCMA released a study earlier this month that found e-prescribing could prevent up to 1.9 million medication errors and would also save the federal government billions over the next decade even after providing funds for equipment and training. Despite the benefits associated with e-prescribing, fewer than one in ten physicians actually use e-prescribing.

1 Bluml, BM, et al., “Pharmaceutical Care Services and Results in Project ImPACT: Hyperlipidemia,” J Am Pharm Assoc, 2000, 40 (2): 157-165.

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Contact Information:
Charles Coté 202-207-3605

E-Prescribing Could Prevent 1.9 Million Medication Errors, Save $26 Billion

(Washington, DC)—The Pharmaceutical Care Management Association (PCMA) today released a new print advertisement in its e-prescribing in Medicare campaign that highlights the 1.9 million medication errors that could be prevented with the technology.

A study conducted by the Gorman Health Group, LLC and released last week by PCMA, found that e-prescribing could prevent up 1.9 million medication errors over the next decade if physicians utilized the technology in Medicare. Along with reducing medication errors, the study also found that even after providing funds for equipment and training, the federal government could save $26 billion.

The new print advertisement features a baseball scoreboard that highlights the 1.9 million medication errors and urges Congress to “get in the game” in considering requiring Medicare doctors to use e-prescribing.

“E-prescribing could prevent 1.9 million medication errors and save the federal government $26 billion,” said PCMA President Mark Merritt. “At a time when Congress is considering a $30 billion payment update for Medicare physicians, it should also consider requiring Medicare doctors to use e-prescribing.”

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Contact Information:
Charles Coté 202-207-3605

Proposal Could Save Federal Government $26 Billion, Prevent 1.9 Million Prescription Errors over 10 Years

(Washington, DC)—A new study released today by the Pharmaceutical Care Management Association (PCMA) finds that electronic (e) prescribing could prevent nearly 2 million medication errors and save the federal government $26 billion over the next decade (even after providing funds for equipment, training, and support) if physicians were required to use the technology in Medicare.

The study, conducted by the Gorman Health Group, LLC, finds that when physicians use e-prescribing to learn their patients’ medication history and prescription choices, both patient safety and savings are dramatically improved. Currently, however, fewer than one in ten physicians actually use e-prescribing.

The Gorman study models three options to increase e-prescribing in Medicare (see below). PCMA’s preferred approach, outlined in Option 1, would be for Congress to require Medicare physicians to use e-prescribing and provide incentive payments that would offset their costs for equipment, training, and support. Gorman projects savings under these options “net” of incentive payments.

“This is a ‘win-win’ solution that improves safety for patients, funds start up costs for physicians, and generates federal savings that could be used to help pay for an ‘update’ in Medicare physician payments. As Congress considers a $30 billion update of physician Medicare payments, it should also consider ensuring that physicians participating in Medicare use e-prescribing,” said PCMA President Mark Merritt.

Options to increase e-prescribing in Medicare include:

Option #1—Requirement Plus Incentives: Implementing a requirement that e-prescribing is used for all Part D prescriptions by 2010 combined with annual incentives for participating physicians equal to 1 percent of their allowed Medicare payments could reduce 2008-2017 federal healthcare costs by $26 billion and help physicians avoid 1.9 million adverse drug events over the next ten years.

Option #2—Requirement Only: Implementing only a requirement that all Part D prescriptions be written electronically by 2010 could reduce 2008-2017 federal healthcare costs by $29 billion and help physicians avoid 1.6 million adverse drug events over the next ten years.

Option #3—Incentives Only: Implementing only incentives for participating physicians equal to 1 percent of their allowed Medicare payments could reduce 2008-2017 federal healthcare costs by $2 billion and help physicians avoid 300,000 adverse drug events over the next ten years.

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PCMA is the national association representing America’s pharmacy benefit managers (PBMs), which lower the cost of prescription drugs for more than 200 million Americans with coverage provided through Fortune 500 employers, health insurers, labor unions, and Medicare Part D

Contact Information:
Charles Coté 202-207-3605

(Washington, DC)— The Pharmaceutical Care Management Association (PCMA) issued the following statement today on the rule issued by the Centers for Medicare & Medicaid Services (CMS) relating to Average Manufacturer Price (AMP). PCMA is the national association representing America’s pharmacy benefit managers (PBMs), which administer prescription drug plans for more than 210 million Americans with health coverage provided through Fortune 500 employers, health insurance plans, labor unions, and Medicare Part D:

“We are encouraged that the rule exempts PBM retail business rebates and discounts from inclusion in the calculation of AMP. As PCMA communicated to CMS during the comment period, including this information would not only have been logistically difficult, but could have had the unintended consequence of negatively impacting manufacturer drug discounting behavior and causing drug prices to increase for the entire pharmaceutical marketplace. We are pleased CMS chose to exempt the inclusion of this proprietary information from AMP.

“However, we remain concerned that mail-service and specialty pharmacy remain included in the definition of ‘retail class of trade’ since neither one dispenses to the ‘general public.’

“PCMA is considering providing further comment on the rule to CMS with regard to the inclusion of mail-service and specialty pharmacy in the current definition.”

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Contact Information:
Charles Coté 202-207-3605

Survey Summary of Findings Regarding E-Prescribing

National Survey of Physicians Regarding E-Prescribing

Gorman Health Group E-Prescribing Study