News & Updates

Smith Drug Company supports end to pharmacy fees that drive up drug costs

Mar 30, 2017 Tags: Capitol Hill, Medicare, NCPA
Medicare Part D Retroactive Charges

Smith Drug Company and Burlington Drug Company recently joined with more than 115 other health care groups to endorse bipartisan legislation that would prohibit pharmacy benefit managers from adding retroactive charges on Medicare Part D prescription drugs.

The effect of those fees is to raise costs for seniors, taxpayers and pharmacies.

The Centers for Medicare & Medicaid Services has noted that these direct and indirect remuneration fees affect Medicare beneficiary cost sharing, CMS payments to Part D plans, and pushes patients prematurely into the catastrophic coverage gap. Nearly all catastrophic costs are born by Medicare, and these costs have more than tripled since 2010 to $24 billion.

The bills in the House and Senate are The Improving Transparency and Accuracy in Medicare Part D Spending Act, S. 413/H.R. 1038 respectively. The effort is coordinated by the National Community Pharmacists Association. Please click here for more information on this issue and here if you’d like to voice your support for this important legislation.

Read the full letter by clicking here.