"Pharmacists say 'benefit managers' hurting industry"

[Padraig18]

PHARMACISTS SAY 'BENEFIT MANAGERS' HURTING INDUSTRY

BY RICHARD GOLDSTEIN
THE SOUTHERN


SOUTHERN ILLINOIS -- As negotiations climax on a federal prescription drug benefit for senior citizens, local pharmacists fear that giving more power to a little-known link in the nation's health care chain will threaten their industry.

"They're putting the crunch on the small community pharmacies, even some of the chain stores," said Erik Cornett, a pharmacist for Marion Medical Pharmacy, "almost forcing people into mail order whether they want to or not because of financial reasons."

Cornett is talking about pharmacy benefit managers -- firms that often serve as middlemen between insurance companies and pharmacies by setting prices that pharmacies can charge when filling prescriptions for insurance companies.

Pharmacists object to the managers moving into the drug distribution business through mail-order pharmacies.

U.S. Rep. Jerry Costello, D-Belleville, agrees that such an arrangement represents a conflict of interest. Costello, who has already once voted against prescription drug legislation, said the role of benefit managers is part of the legislation's theme giving more benefits to insurance, drug companies and other private companies than to senior citizens.

"In the end, the consumer pays more, which means the taxpayer pays more through the Medicare program," Costello said.

Steve Tomaszewski, a spokesman for U.S. Rep. John Shimkus, R-Collinsville, said Shimkus has yet to decide whether he favors inclusion of benefit managers operating mail-order pharmacies in the Medicare prescription drugs benefit. Tomaszewski said Shimkus is waiting for a report by the Congressional Budget Office about the likely effect benefit managers would have on the cost of a prescription drug benefit.

Gary Reynolds, a pharmacist for Fred's Pharmacy in McLeansboro, a chain store, said expanding the role of mail-order pharmacies has the additional drawback of being mostly unregulated.

Reynolds, a former chairman of the Illinois Board of Pharmacy, said the state cannot enforce state standards against Illinois-based mail order firms because they speak only by telephone to clients who call from out of state.

Phil Blando, a spokesman for the Pharmaceutical Care Management Association, a lobbying group for pharmacy benefit managers, denied there is a conflict of interest. He pointed to a General Accounting Office study from January that concluded pharmacy benefit managers save money on the cost of pharmaceuticals.

http://www.southernillinoisan.com/rednews/2003/10/21/build/top/TOP004.html


While I agree that this legislation will force most people to turn to online pharmacies to the detriment of the small independents, doesn't it highlight the larger problem of the outrageous cost of life-saving and -sustaining drugs while at one and the same time failing to address that issue?