(Washington, DC)— The Pharmaceutical Care Management Association (PCMA) issued the following statement in response to the Snowe-Wyden amendment approved today by the Senate that would require the federal government to negotiate drug prices in the Medicare prescription drug benefit:

“PCMA strongly believes that ‘direct negotiation’ of drug prices would hurt seniors, working families and small businesses. Requiring the federal government to directly negotiate prescription drug prices will take away drug choices for seniors and require massive cost-shifting to consumers and employers in the private marketplace.

“Proponents of ‘direct negotiation’ use the Veterans’ Administration (VA) drug plan as a model. However, a report from the U.S. General Accounting Office has noted that ‘mandating that federal prices for outpatient prescription drugs [such as the VA model] be extended to a large group of purchasers, such as Medicare beneficiaries, could lower the prices they pay, but raise prices for others.’

“The proven tools relied upon by pharmacy benefit managers (PBMs) and Medicare prescription drug plans (PDPs) have struck the right balance in managing costs while providing seniors with the prescription drugs they need. PCMA’s own analysis has found that PDPs are saving the Medicare program and beneficiaries an average of 35 percent on medications purchased at retail pharmacies and 46 percent on medications purchased through mail-service pharmacies.

“The Medicare drug benefit is working as Congress and the Administration intended, and is expanding access and driving down drug costs for seniors. Medicare drug plans and the Centers for Medicare & Medicaid Services are working hard to address the remaining challenges for certain groups of beneficiaries and are making progress everyday. Regrettably, Medicare ‘direct negotiation’ of drug prices would take us in the wrong direction by reducing seniors’ drug choices and shifting billions of dollars of costs to working families and small businesses.”
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The Pharmaceutical Care Management Association (PCMA) is the national trade association representing America’s pharmacy benefit managers (PBMs). PCMA member companies provide pharmaceutical care management services to more than 200 million Americans.

Contact Information:
Phil Blando, 202-207-3614
Charles Coté 202-207-3605