HDMA COMMENDS U.S. SENATE FOR PASSING THE MEDICARE IMPROVEMENTS FOR PATIENTS AND PROVIDERS ACT (H.R.6331)

Legislation Helps Ensure Medicaid Reimbursement to Pharmacies
Is Fair and Accurate

Arlington, VA – July 10, 2008 – HDMA applauds members of the U.S. Senate for passing essential legislation that will help ensure that thousands of retail pharmacies can continue to serve Medicaid beneficiaries nationwide. The Medicare Improvements for Patients and Providers Act (H.R.6331), passed yesterday, will postpone the use of AMP data until October 1, 2009.

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.

“The U.S. Senate should be commended for acting swiftly and for passing legislation that makes substantial progress toward remedying the ongoing problem of inadequate retail pharmacy reimbursement under the AMP final rule,” said Scott Melville, HDMA Senior Vice President of Government Affairs. “The Senate’s vote was a necessary step needed to support the nation’s pharmacies and preserve their ability to provide valued medicines and services to Medicaid patients.”

Although an important first step, additional legislative initiatives beyond H.R. 6331 are needed to ensure that Medicaid reimbursements under the AMP final rule are fair and accurate. HDMA will continue to work with pharmacy groups and Congress to achieve appropriate, long-term legislative changes to revise AMP so that it is a more accurate reflection of 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.