(Washington, DC)— In response to the House Judiciary Committee’s plans tomorrow to mark up legislation (HR 971) that would grant independent pharmacists sweeping antitrust exemptions, the Pharmaceutical Care Management Association (PCMA) issued the following statement:

“This expensive piece of legislation couldn’t have come at a worse time for policymakers and consumers alike. While most everyone is searching for new ways to save money on prescription drugs, this proposal would dramatically increase costs while providing no corresponding upside for consumers.

“This bill would give white collar business owners, whose median annual salary is $100,720[1], privileges usually reserved for blue collar union workers.

“By exempting pharmacies from antitrust laws, HR 971 would give independent pharmacies the right to collude to raise prescription drug prices. The pharmacy antitrust exemptions in this legislation would increase prescription drug costs for Medicare and commercial payors by up to 11.8 percent, or $29.6 billion over five years, according to an analysis from CRA International.

“HR 971 also fails to take into account the fact that most independent pharmacies already hire groups called Pharmacy Service Administrative Organizations (PSAOs) which collectively bargain on their behalf for higher payments in Part D and other programs. Independent pharmacies also use PSAOs to win rebates from drug manufacturers and to serve as a ‘go-between’ to process payments from PBMs and health plans.

“Additionally, rural pharmacies enjoy further leverage due to the broad pharmacy network access standards required in Medicare.”

Opposition to HR 971

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PCMA is the national association representing America’s pharmacy benefit managers (PBMs), which administer prescription drug plans for more than 210 million Americans with health coverage provided through Fortune 500 employers, health insurance plans, labor unions, and Medicare Part D.

[1] Salary.com: http://swz.salary.com/salarywizard/layouthtmls/swzl_compresult_national_HC07000011.html

Contact Information:
Charles Coté 202-207-3605