Lucas Protects Community Pharmacies

Press Release

Lucas Protects Community Pharmacies

Representative Frank Lucas joined with other Members of Congress last week to urge Senate leaders to incorporate two bills aimed at helping community pharmacies into upcoming Medicare legislation.

As a result of changes made under the Deficit Reduction Act of 2005, the Medicaid pharmacy reimbursement system for generic drugs is set to shift to a system calculated based on the Average Manufacturer Price (AMP). The Government Accountability Office (GAO) determined that its use will result in reimbursements well below the actual pharmacy acquisition costs. H.R. 3140, the "Saving Our Community Pharmacies Act of 2007," would replace the AMP with the median retail cost, which will ensure pharmacists receive accurate reimbursement rates for Medicaid prescriptions.

"The AMP will cause many community pharmacies to drop or reduce their participation in Medicaid and can even run those pharmacies with a very high percentage of Medicaid recipients out of business, stated Lucas. "Medicaid patients are some of our most vulnerable citizens and we shouldn't be, in effect, penalizing pharmacists on whom they rely for medication."

In addition, many community pharmacies are facing financial hardships due to slow reimbursements by Medicare and unclear claim processing rules. H.R. 1474, the "Fair and Speedy Treatment of Claims Act of 2007," would ensure that pharmacists are paid in a timely manner by Medicare Prescription Drug Plans for their services and are notified promptly if there are any problems with submitted claims.

"These pharmacies are serving their local communities, but are suffering from slow reimbursements by Medicare. And while they are waiting for these reimbursements, they are forced to go out of business because they can't pay their bills," stated Lucas. "We must make certain that a mother does not have to drive three towns away to get the medication she needs for her sick child because her local pharmacist was run out of business by the federal government."

The letter, signed by 85 Members of Congress, was sent to Senate leadership as well as the Chairman and Ranking Member of the Senate Finance Committee, which has jurisdiction over Medicare. A Medicare package is expected to be crafted by the committee by the end of this summer.

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