EDITORIAL
These are definitely trying times for Independent Pharmacy as we collectively fight for our survival – and WE WILL! – Independent Pharmacy will survive because no matter who challenges us: They cannot and will not ever be able to do what we do for our patients.
I gave a speech when elected President of the PARD in 1990 which I purposely plagiarized from the incoming President of PARD in 1926. “The world of Pharmacy was coming to an end” and they were complaining about discounters and “how will we compete?” The names of the companies have changed, the problems may sound different, but the fact remains - INDEPENDENT PHARMACY WILL SURVIVE.
As I sit with our Vendors, they constantly tell me about how frustrated all Independent Pharmacies throughout the country are and that they are worried about their future. But then I sit with pharmacy organizations throughout the country & they tell me how difficult it is to have these same people come to meetings, become active politically, and complain that their organizations are not working on our behalf. The “Other Guy will do it” theory does not work.
Then there are some groups out there that seem to like becoming rebel-rozers and are sending out bad information on what is occurring. One particular group headquartered in California blames ALL Medicare D problems on NCPA. Actually, NCPA was against the Medicare D Plan as originally designed and fought against initiating this program because they felt the PBM’s would take over control-- which they have. The CCRx acquisition by CVS-Caremark is also blamed on NCPA. NCPA helped create CCRx which aligned the interests of the patient, pharmacy, prescriber and payer including no mail order and fair reimbursement. They never controlled the CCRx plan, they helped develop the guiding principles and owned the CCRx trademark. It has changed ownership a few times now. NCPA was as surprised as everyone else when it was announced that CVS-Caremark was buying CCRx. Two years ago, NCPA led the way asking the Federal Trade Commission to investigate the CVS-Caremark merger. Since then, over 20 state attorney generals have started their own investigations. As for the statement from this group saying the Past CEO of NCPA is now working for a Mail-Order House – Nonsense. He had a brief stint with a small PBM in which he hoped to change the PBM industry. He left after just 6 weeks when he realized he picked the wrong partner.
Here is another fact about NCPA that you may not be aware of. Three years ago CMS was going to initiate an AMP program for the reimbursement of generics in the Medicaid program. As originally written, the average loss on cost of goods would have been 32% below your acquisition cost because it included pricing to mail order and LTC. NCPA obtained a court injunction and many of our stores are still in business because of this injunction. It has been re-written in favor of Independent Pharmacy because of NCPA.
Don’t blame the messenger – You may be part of the Problem!
Do your part:
Be a member of your National, State & County Associations and support their PAC’s
Be politically active – our biggest complaint from legislators is that they do not hear any complaints from our members.
As frustrating as it is – Political Action is our only way to solve the problems occurring in our profession. It takes time and a lot of work. We are fighting multi-billion dollar organizations (PBM’s and Insurance Companies) that spend millions on lobbying.
A Mail-Order Bill and an Audit Bill are finally being initiated in Pennsylvania that is being endorsed by all the Active Associations in Pennsylvania. ONE VOICE!!!
PARD has a professional lobbyist,
PPA has a professional lobbyist,
& of course, we still have Carmen DiCello lobbying.
AND they are finally working together on the same Legislative Bills.
2011 may be our year.
UPDATE:
It seems now that Keystone is endorsing only 1 of the BIG 3 Wholesalers, the other 2 are running around offering better pricing than they offered Keystone Stores for 2011. Better than they have ever offered anyone in the past. This is good news for everyone.
Competition is good – and Keystone remains Pro-Active on behalf of our stores. Our contracts mandate that our vendors remain competitive in the market-place.
We can still assure you that their new proposals are NOT as good as we can offer you from our Endorsed Wholesalers. Before you make any decisions, let us help you find the “Smoke and Mirrors” in many of the offerings provided by Non-Endorsed Wholesalers. Allow Keystone to keep watching your back by increasing participation which, in turn, increases our negotiating power.
THE KEY IN KEYSTONE IS PARTICIPATION
REBATES TO STORES IN 2009 $2,456,000
REBATES TO STORES IN 2010 $3,492,000 A 42% INCREASE
REBATES TO STORES IN 2011 THAT’S UP TO YOU!!!!