PCMA: New Government Data ‘Direct Challenge’ to Medicare Policymakers To Replicate PBMs’ Proven Success in Helping to Lower Rx Drug Spending Growth Rate
Washington, DC; 02.11.04 — Government health data released this morning is a direct challenge to policymakers to preserve PBMs’proven techniques as they work to implement the new Medicare drug benefit, the Pharmaceutical Care Management Association (PCMA) said today.
The data projections were provided by researchers from the Centers for Medicare and Medicaid Services (CMS) and posted on the Health Affairs website. PCMA is the national trade association representing America’s pharmaceutical benefit managers (PBMs).
“PBMs are clearly working to help turn the tide on the rate of growth in private-sector prescription drug spending,”said PCMA President & CEO Mark Merritt. “With the advent of a Medicare prescription drug benefit, policymakers need PBMs more than ever. The challenge now before policymakers as they implement the new drug benefit is to ensure that they preserve in Medicare the same tools and techniques that have helped private purchasers and other public purchasers to lower their drug spending growth rate.”
According to CMS, the rate of growth in private-sector prescription drug spending is projected to decelerate in 2003 to 13.4 percent Ă¢??the fifth consecutive year of decline in the growth rate. CMS projects the rate of growth in prescription drug spending to decline even further by 2005 to 12.4 percent. Taken together, CMS projects that the rate of growth in prescription drug spending will decline by 37 percent from 1999 to 2005. CMS attributes this decline to a variety of factors, including multi-tier formularies, therapeutic interchange, and increased competition in the marketplace.
Significantly, the CMS projections do not include projections on the spending associated with a Medicare prescription drug benefit. However, the authors project increased prescription drug utilization in Medicare once the full benefit is available to seniors Ă¢??particularly those with no drug coverage now Ă¢??in 2006. PBMs will be critical to helping Medicare provide an affordable, sustainable benefit to America’s seniors and disabled beneficiaries.
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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