NACDS praises DIR fee and pharmacy access bill as vital for PBM reform

ARLINGTON, Va. – The National Association of Chain Drug Stores (NACDS) today praised the bipartisan introduction of the Protect Patient Access to Pharmacies Act (S. 2052) – a bill that would help preserve Medicare beneficiaries’ access to their pharmacy of choice and help stop “pharmaceutical benefit manipulation” that harms patients and pharmacies alike.

Steven Anderson

U.S. Senators Jon Tester (D-MT), Shelley Moore-Capito (R-WV), Sherrod Brown (D-OH), and James Lankford (R-OK) introduced the bill, which NACDS is heralding as an important aspect of comprehensive pharmacy benefit manager (PBM) reform – that is, reform to confront the tactics of prescription-drug middlemen. Specifically, the bill would help to foster enforcement of “any willing pharmacy” laws that prevent the exclusion of pharmacies from Medicare plan networks, and would help to prevent the abuse of direct and indirect remuneration (DIR) fees that have increased prescription drug prices and that have the effect of squeezing out pharmacies.

NACDS president and CEO Steven Anderson said: “Ending DIR fee abuses is essential for patients’ pharmacy access, for lower drug prices, and to prevent the baffling expectation that pharmacies fill prescriptions at a loss while PBMs manipulate the Part D program to boost their profits at the expense of seniors. NACDS represents regional pharmacies with as few as four stores as well as national pharmacies – and we emphasize that DIR fee reform is essential for comprehensive PBM reform that matters to all patients and to the diverse pharmacies that serve them.”In a commonly cited demonstration of the rampant nature of DIR fees, the Centers for Medicare & Medicaid Services has determined that between 2010 and 2020 DIR fees grew by more than a staggering 107,400%.NACDS is urging the legislation as an important aspect – among others – of comprehensive PBM reform. The NACDS Principles of PBM Reformdemonstrate the actions necessary across payer segments – through federal and state laws, regulations, and enforcement – to bring about pro-patient and pro-pharmacy policies.

NACDS also joined pharmacy and pharmacist associations in issuing a statement to speak with one voice in favor of this extremely important legislation.