Letter to the Hon. James Mattis, Secretary of Defense - Senators Urge Department of Defense to Explore Efforts to Reduce Prescription Drug Costs in TRICARE

Letter

Dear Secretary Mattis:

The undersigned members of the Senate urge the timely consideration of a pilot provision of the FY2017 National Defense Authorization Act (NDAA) that will reduce prescription drug costs for the Department, protect beneficiary health, and improve choice in points of access for beneficiaries.

We believe the TRICARE Acquisition Cost Parity Pilot Program for Retail Pharmacy is a sensible approach to reducing prescription drug costs in the TRICARE program. Currently, all TRICARE beneficiaries are required to obtain their non-generic maintenance medications at a military treatment facility (MTF) or through mail order. This pilot will restore access to chain and small business pharmacies for retired beneficiaries who rely on non-generic maintenance medications, maintain access to existing mail order and MTF options and reduce costs.

Cost savings would be achieved through the elimination of the acquisition cost disparity among pharmacy service locations by giving the DoD the authority to require that brand medications dispensed in the retail setting be purchased at the much lower rate it currently pays for the same medications dispensed in mail or MTFs. This change will save the DoD money through both lower purchasing costs and reduced administrative costs.

Because the FY2017 NDAA requires the pilot to begin on October 1, 2017, we urge you to act quickly to consider the pilot program. In addition to reducing costs to the TRICARE program, this pilot will help small businesses contribute back to their local economies and will help to sustain the pharmacy benefit upon which our deserving military veterans and families rely.

We look forward to working with the DoD on this program.