NCPA supports Kentucky Senate bill for transparency of MAC pricing

ALEXANDRIA, Va. — The National Community Pharmacists Association on Thursday applauded the Kentucky Senate for voting to pass S.B. 107, a bill that will provide transparency regarding how pharmacy reimbursements are determined for multiple source generic drugs, and establish an appeals process when a dispute arises over those payment levels. 

“Pharmacists made the business case in presenting their argument to the Senate for transparency in how MAC prices are set," commented Robert McFalls, executive director of the Kentucky Pharmacists Association. "Now, we will turn our efforts to the House, which also is very supportive of issues affecting community pharmacies, to get this legislation passed and enacted as quickly as possible." 

“As we stated in our letter to the Kentucky Senate before it approved this common-sense reform, the MAC process is analogous to a carpenter contracting to build a house for a customer without knowing how much they will be paid, how much their materials will ultimately cost, or how or when those costs will change," stated Douglas Hoey, NCPA CEO. "Obviously that’s no way to run a business, but that’s the system PBMs force upon pharmacies, and that must change.”

NCPA urged the Kentucky House to pass similar legislation that NCPA has supported in previous legislative sessions.

Kentucky’s 507 independent community pharmacies employ approximately 5,300 people, and are most affected by the current MAC process, NCPA noted. "These small business health care providers receive 90% of their revenue from prescription drugs, and 80% of that mix is generic, most of which are subject to the MAC lists," the association stated. 

S.B. 107 would create a set of standards with relation to categorizations and formularies for how PBMs craft their MAC lists, require more frequent updates, and streamline the process for pharmacy reimbursement appeals.