HDMA COMMENDS HOUSE COMMITTEE CHAIRMEN FOR BILL PROVISIONS THAT ENABLE PHARMACIES NATIONWIDE TO CONTINUE TO SERVE
MEDICAID BENEFICIARIES

Arlington, VA – June 24, 2008 – HDMA applauds House and Ways Committee Chairman Charlie Rangel (D-NY) and House Energy and Commerce Committee Chairman John Dingell (D-MI) for including vital provisions in House legislation that will help ensure that thousands of retail pharmacies can continue to serve Medicaid beneficiaries nationwide. These provisions postpone the use of AMP data until October 1, 2009. HDMA urges Members of the Senate include similar provisions in companion legislation being considered now. 

Although not directly reimbursed by Medicaid, HDMA’s primary, full-service distributor members provide prescription medicines and healthcare products to both chain and independent pharmacies across the nation.  HDMA supports ongoing efforts to ensure these pharmacies are appropriately reimbursed, and can continue to provide vital medications to Medicaid beneficiaries.

“HDMA believes that these provisions are critical to ensure Medicaid payments to pharmacies are fair and accurate,” said Scott Melville, HDMA Senior Vice President of Government Affairs. “We commend Chairman Dingell and Chairman Rangel for taking the necessary steps on behalf of continued patient health and access to medicines.”

HDMA believes that postponing the use of AMP data to October 1, 2009, will help address the ongoing problem of inadequate retail pharmacy reimbursement under the AMP final rule. HDMA will continue to work with pharmacy groups and Congress to achieve appropriate, long-term legislative changes to revise the AMP rule to more accurately reflect retail pharmacy acquisition and dispensing costs. Without these changes, HDMA remains concerned that AMP-based reimbursement will have a negative impact on the economic viability of pharmacies and on the patients who depend on them each day.

About HDMA
The Healthcare Distribution Management Association (HDMA) is the national association representing primary, full-service healthcare distributors. Each business day, the member companies of HDMA are responsible for ensuring that more than eight million prescription medicines and healthcare products are safely delivered to 145,000 pharmacies, hospitals, nursing homes, physician offices, clinics, government and other providers in all 50 states. This essential public health function is provided with tremendous efficiency, saving the nation’s healthcare system nearly $32 billion each year. HDMA and its members are the vital link in the healthcare system, working daily to provide value, remove costs and develop innovative solutions to deliver care safely and effectively.