(Washington, DC)—The Pharmaceutical Care Management Association (PCMA) issued the following statement in response to yet another attack on Medicare Part D by the drugstore industry lobby:

“Regrettably, the drugstore industry lobby continues to present a pauper’s faÃ?§ade to policymakers and the news media, while, in reality, drugstores are enjoying robust earnings, store expansions, and increased pharmacy sales under Medicare Part D.

For decades, the drugstore industry profited handsomely from seniors without drug coverage and the uninsured. Seniors and the uninsured paid some of the highest drug prices of all at the retail pharmacy counter, with drugstores earning their highest gross-profit margins — 40 percent or more â?? on prescriptions paid by uninsured consumers. With the advent of Medicare Part D, individual seniors now have the protection of drug plans negotiating on their behalf against the $174 billion drugstore industry. Seniors are seeing deep discounts averaging 27 percent, lower-than-expected premiums, and are increasingly satisfied with the new drug benefit.

“Despite the rhetoric coming from their assorted lobbying groups, the drugstore industry is flourishing under Medicare Part D:

Ã?· In recent weeks, the nation’s large drugstore chains have beat analyst expectations and have reported strong pharmacy sales increases. One of the nation’s largest chain drugstores reported opening 39 stores in July alone and acquired 77 additional stores.

�· Over the past six months alone, national chain drugstores have seen their stock valuations increase between 10 and 25 percent.

Ã?· Independent pharmacies continue to grow and their owners rank among the nation’s top four-percent wage earners.

Ã?· Pharmacy is one of the nation’s hottest professions. Fueled by this growing demand, the average pharmacist compensation will top $98,000 in 2006. Since 2004, the average total cash compensation for staff pharmacists has increased by nearly $10,000.

“PCMA believes strongly these data hardly portray a drugstore industry in distress. It’s time to reconcile the drugstore lobby’s rhetoric inside the Beltway with reality. Drugstores are flourishing under Medicare Part D.”

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PCMA is the national association representing America’s pharmacy benefit managers (PBMs), which administer prescription drug plans for more than 200 million Americans with health coverage provided through small businesses, Fortune 500 employers, health insurers, labor unions, and Medicare.

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