TRICARE bill a pending victory for Rx
WASHINGTON —Retail pharmacy came one big step closer to a key victory in its ongoing battle to level the playing field with mail-order pharmacy early this month.
That step came with passage by the U.S. Senate of the National Defense Authorization Act for Fiscal Year 2008. Among its many components, the bill includes the reauthorization of the TRICARE military health system and its prescription drug coverage program.
At press time, the bill still required negotiation of differences between the House of Representatives and Senate versions, followed by the signature of the President. But if signed into law as written, the legislation would continue allowing soldiers, military retirees and their families to continue using local community pharmacies for their prescriptions without penalty, rather than being forced to turn to mail-order pharmacies.
The Senate bill includes the “pro-soldier, pro-savings” approach to prescriptions filled through TRICARE that’s advocated by groups like the National Association of Chain Drug Stores and the National Community Pharmacists Association. It would extend the current freeze on increases in retail pharmacy out-of-pocket costs for TRICARE members and their families.
To that end, the defense funding bill includes language, offered by Senator Frank Lautenberg (D-NJ), that prohibits increased co-payments for military beneficiaries who choose to have their prescriptions filled by a retail pharmacy, instead of opting for medicines by mail.
The Senate bill also clarifies the ability of the Department of Defense to negotiate with drug manufacturers for federal pricing discounts for TRICARE prescriptions filled at retail, in the same manner as those filled at military bases or by mail order. Those price discounts could yield $300 million in savings in fiscal 2008, according to Congressional Budget Office estimates, and $1.8 billion in savings through the year 2012.
“In addition to leveling the playing field between mail order and retail pharmacies, these tremendous savings eliminate the need to penalize beneficiaries who choose to obtain their prescription medications and services from their local pharmacies,” NACDS noted in a statement.
“This bill is pro-soldier in that it protects the right of over 9 million TRICARE beneficiaries to benefit from their relationships with chain community pharmacists…which improve patient outcomes,” said NACDS president and chief executive officer Steven Anderson. “The bill also is prosavings for military families and for the Department of Defense alike.
“Now that these provisions have passed both the House and Senate, chain community pharmacy will remain vigilant to ensure this sound approach to public policy is enacted into law,” he added.
Through the Coalition for Community Pharmacy Action, NACDS and NCPA are lobbying for the quick enactment of the law.