PCMA Opposes Any Modification of Noninterference Language in Medicare Modernization Act
(Washington, DC)—The Pharmaceutical Care Management Association (PCMA) today reiterated its opposition to any modification of noninterference language in the Medicare Modernization Act as such a move could lead to higher prescription drug costs in the commercial marketplace and fewer choices for seniors, and would send the wrong message to companies considering participation in the new part D program.
PCMA is the national association representing America’s pharmacy benefit managers (PBMs). PBMs administer prescription drug plans for more than 200 million Americans with drug coverage provided through unions, employers, health insurance plans, and public programs.
“Direct negotiation’ is shorthand for higher costs and fewer choices,” said PCMA President Mark Merritt. “Furthermore, at a time when PBMs and others are considering participation in the new part D program, approving this amendment could send the wrong signal and could undermine a robust and competitive marketplace in Medicare.”
PBMs help drive down the cost of prescription drugs for consumers and plan sponsors Ă¢?? on average by 25 percent Ă¢?? by negotiating discounts with drug manufacturers and retail pharmacies. According to PricewaterhouseCoopers, over the next ten years, PBMs will save Medicare beneficiaries and retirees with employer-sponsored coverage nearly $700 billion on the cost of prescription drugs. In 2005 alone, these savings translate to $937 per Medicare beneficiary in private plans.
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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