Proposed Regulation Extends Prescription Drug Benefit, More Choice & Competition to America’s Seniors & Disabled Beneficiaries

Washington, DC; 07.26.04 — Mark Merritt, President & Chief Executive Officer of the Pharmaceutical Care Management Association (PCMA) released the following statement in light of the announcement regarding the new proposed regulation surrounding the Medicare Modernization Act. PCMA is the national trade association representing America’s pharmacy benefit managers (PBMs):

“For too long, America’s seniors have been second-class health care citizens, with no universal drug benefit and private plan options. Today’s proposed regulation goes a long way toward closing this disparity.

“PCMA looks forward to reviewing the proposed regulation in detail and providing comments. As this process moves forward, PCMA will work constructively with the Centers for Medicare & Medicaid Services and others to ensure that the final regulation builds on PBMs’ proven success in other parts of the market. According to a new analysis from PricewaterhouseCoopers, over the next decade, PBMs will save Medicare beneficiaries in private plans $693 billion on the cost of their prescription drugs. In 2005, these savings translate to $937 per Medicare beneficiary in private plans. It is important that the final regulations preserve PBMs’ ability to achieve those anticipated savings in the coming decade.

“A key challenge going forward lies with striking the right balance between cost, access, and quality. PBMs have proven most effective in the private marketplace when PBMs have had the leverage to protect consumers from excessive markups from the drug manufacturers and retail pharmacies.”

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The Pharmaceutical Care Management Association (PCMA) is the national trade association representing America’s pharmaceutical benefit managers (PBMs). PCMA member companies provide pharmaceutical care management services to more than 200 million Americans.

Contact Information:
Phil Blando
202-207-3614