[Congressional Record Volume 152, Number 48 (Thursday, April 27, 2006)]
[Senate]
[Page S3710]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. BAUCUS (for himself, Mrs. Lincoln, and Mr. Conrad):
  S. 2664. A bill to amend title XVIII of the Social Security Act to 
improve access to pharmacies under part D; to the Committee on Finance.
  Mr. BAUCUS. Mr. President, today I am introducing the Pharmacy Access 
Improvement Act of 2006.
  The Medicare prescription drug benefit got off to a bumpy start. As 
the new benefit was rolled out, the program experienced problems 
related to its computer system and databases. A lot of those problems 
have been fixed. But a new computer program or new software could not 
fix a number of the problems that pharmacists faced.
  The Medicare drug benefit made big changes to the pharmacy business. 
Transitioning dual eligible beneficiaries from Medicaid to Medicare 
drug coverage affected the pharmacists who provide drugs. And 
pharmacists have experienced problems dealing with the private drug 
plans that offer the new benefit.
  I have been hearing from pharmacists in Montana who are struggling. 
They are trying to help their patients. But they face great difficulty. 
The success of the Medicare drug benefit ultimately depends on the 
pharmacists who deliver the drugs. So we have to help them. And we must 
act now, before pharmacists find that they are no longer able to 
provide drugs to Medicare beneficiaries, or to provide drugs at all.
  This bill would provide the help that pharmacists need to continue 
delivering the Medicare drug benefit. It would resolve problems that 
they face every day as they provide Medicare beneficiaries with their 
drugs. It would help ensure that pharmacies remain open and operable so 
the drug benefit can be a meaningful part of beneficiaries' health 
care.
  The Pharmacy Access Improvement Act would do several things to help 
pharmacies. First, it would strengthen the access standards that drug 
plans have to meet. It is important that the drug plans contract with 
broad and far-reaching networks of pharmacies. This bill would ensure 
that the pharmacies that drug plans count in their networks provide 
real access to Medicare beneficiaries.
  It would also help safety net pharmacies to join drug plan networks. 
These pharmacies have served the most vulnerable patients for years. 
They should be able to continue to do so. Drug plans should not be 
allowed to exclude safety net pharmacies. Excluding them does a huge 
disservice to needy beneficiaries. This bill would rectify the problems 
that safety net pharmacies have encountered in participating in the 
Medicare drug benefit.
  The Pharmacy Access Improvement Act would speed up reimbursement to 
pharmacies. The delay that pharmacies have experienced in receiving 
payment from drug plans has sent pharmacies all over the country into 
financial frenzy. These delays have forced pharmacies to seek 
additional credit, dip into their savings, or worse, as they try to 
continue operations. This bill would require drug plans to pay 
promptly. Most claims would be reimbursed within 2 weeks, making it 
easier for pharmacies to operate. And the bill would impose a monetary 
penalty on plans if they paid late.
  One of the most common complaints from beneficiaries has been how 
confused they are. One source of their confusion comes from the 
practice of co-branding. Co-branding is when a drug plan partners with 
a pharmacy chain and then includes the pharmacy's logo or name on its 
marketing materials and identification cards. This is confusing, 
because it sends the message that drugs are available only from that 
pharmacy. And that is not true. To help end this confusion, the 
Pharmacy Access Improvement Act would prohibit drug plans from placing 
pharmacy logos or trademarks on their identification cards and restrict 
other forms of co-branding.
  This bill would also require that pharmacists be paid reasonable 
dispensing fees for each prescription that they fill. Currently, some 
plans pay no dispensing fees. Other plans pay only nominal dispensing 
fees. Pharmacists are not able to cover their costs of dispensing 
drugs. And that puts them at a severe disadvantage. It eats up their 
margins from non-Medicare business. And it is unsustainable in the 
long-run.
  Some would say that it is too soon to consider legislation that 
affects the Medicare drug benefit. I disagree. The problems that 
pharmacists are facing are real. And they are not going away. If we 
wait a year to consider the Pharmacy Access Improvement Act, it may be 
too late for many pharmacists and the beneficiaries whom they serve. We 
have a duty to make the Medicare drug benefit as strong and robust as 
it can be. And the Pharmacy Access Improvement Act presents an 
opportunity for us to do just that. I urge my colleagues to support it.
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