Mr. Speaker, I rise today in support of our Nation's community pharmacies which play a critical role in our healthcare system. Many of these independent businesses operate in underserved or rural areas--like many of the counties in…
Mr. Speaker, I rise today in support of our Nation's community pharmacies which play a critical role in our healthcare system.
Many of these independent businesses operate in underserved or rural areas--like many of the counties in Georgia's Eighth Congressional District, which I represent--where access to carriers is already an issue and would be worse if community pharmacies did not exist.
In areas where a doctor can be many miles away, local pharmacists deliver flu shots, give advice on over-the-counter drugs, and help with those late-night drugstore runs for a sick child. Many people in our rural communities see their pharmacists much more often than their doctors. There is a very personal relationship between the pharmacist, the patient, and the physician.
As pillars in their community, they are also the businesses that contribute greatly to local economies. It is crucial that these pharmacies have an equitable playing field against large-scale competitors and middleman pharmacy benefit managers when trying to run a successful business in a challenging and complex environment.
I want to reiterate, Mr. Speaker, all they ask for is an equitable playing field. No advantages, just equality. Where I am from, local pharmacists are often a fixture in their communities. These pharmacists have known most of their customers all of their lives. They instill a level of trust that is unparalleled.
I frequently stop in at local community pharmacies when I am back home in the district and never fail to appreciate the unique value they add to their customers' lives. Unfortunately, on some of these visits, I am also troubled to learn how community pharmacies are finding it extremely difficult to serve the people who have depended on them for years and to compete with some of the larger entities in the healthcare marketplace.
Take, for example, the increased prevalence of preferred networks in Medicare part D plans. Currently, many Medicaid beneficiaries are told by pharmacy benefit managers, or PBMs, which pharmacy to use based on exclusionary arrangements between those PBMs and, for the most part, big-box pharmacies. What most people don't know is that, in fact, in several instances, these big-box pharmacies actually own the PBMs that are creating these preferred networks.
Patients must pay higher copays just because the pharmacy they want to use is excluded by the PBM, who again, as I said, in many cases, actually own the larger pharmacy that they force you to do business with. The majority of the time, the hometown pharmacy is never given the opportunity to participate in the network in the first place.
Another issue I often hear about from community pharmacies is the burdensome DIR fees. Most Americans probably assume that it is a pretty simple transaction when they purchase medication from their local pharmacy. They go in, they pay a copay, and that is the end of it.
But for the pharmacy, the transaction is anything but clear and simple. Pharmacy benefit managers use so-called DIR fees to claw back money from pharmacies on the individual claims long after the claim is thought to have been resolved. That means that a pharmacy often doesn't know the final reimbursement amount they will receive for a claim for weeks, or even months.
Anyone who runs a pharmacy, or any other small business for that matter, knows you can't operate when you don't know what your reimbursements are. When competition is stifled and these small businesses suffer, so do hardworking Americans when they have had their choice to use a community pharmacy instead of a big-box business taken away from them.
Another issue I frequently hear about is the lack of transparency in generic drug reimbursements to pharmacies. Generic prescription drugs account for approximately 80 percent of drugs dispensed. The reimbursement system for these medications is largely unregulated and a complete mystery to all of us. Now, if it is unregulated with transparency, that is fine. But it is unregulated without any transparency.
Pharmacists are often reimbursed for generics by what is referred to as the maximum allowable cost list created by the pharmacy benefit managers. But the methodologies used to create these lists are not disclosed, nor are the lists updated on a regular basis, which frequently results in pharmacists being reimbursed below the actual acquisition cost for various medications.
In recent years, these extra costs that affect prescription drug prices in community pharmacies have fallen on consumers. Take doxycycline, for example. Doxycycline is a drug that is used to treat a number of bacterial infections. As a generic antibiotic, it has been around for decades. I want to repeat: it is a generic that has been around for decades. In 2012, 30 capsules of doxycycline cost approximately $15. In 2017, the same dosage cost $115. That is a price increase of 667 percent.
I want to give you a real-world example of the impact this has on low-income patients in the world. I have a wonderful OB-GYN in my area, and he told me that prior to the price increase, he would simply keep doxycycline in his office, and when he had a patient that needed it, he could simply give the patient--if it was a low-income patient--the drugs instead of having them go to the pharmacy to pick them up. But with a 667 percent price increase, they could no longer affor to simply give the patients the medication that they need.
Nitroglycerin tablets are another example. Nitroglycerin has been used to treat chest pain and stop a heart attack and has seen similar price hikes in the past few years. Again, it is a generic drug that has been around for decades--no excuse in the price increases other than flat out greed.
A drug that is even more common that has been affected by the lack of transparency in the drug market is insulin. As you may know, millions of Americans with diabetes rely on insulin. They have to have it, or they will simply die. According to the American Diabetes Association, the price of insulin in America has nearly tripled over the past 15 years, making the drug nearly unaffordable for many diabetic patients.
The dramatic price hikes of insulin is ironic since, in the early 1920s, Frederick Banting, one of the scientists who helped to first develop insulin, sold the patent for the drug for $3 because their goal was to make the drug affordable and easy to access for everybody in the world.
Now, nearly 100 years later, one vial of Humalog can cost nearly $400 in the United States, where it costs a fraction of that in other countries around the world. In Canada and Mexico, the same dosage of Humalog costs less than half, or sometimes even a quarter of what it costs in the United States.
I understand that there is a tremendous cost in developing lifesaving treatments, new drugs, and the next development that is going to save a cancer patient, but these are generic drugs that have been around for decades. These dramatic price increases, the international price disparities, they are occurring, again, on drugs that have been around for decades because of this pricing scam put in place by the pharmacy benefit managers.
In the coming months, I look forward to continuing to work with my colleagues to address the lack of transparency in the pharmaceutical industry, giving community pharmacies an equitable playing field to compete,
which gives hardworking Americans the choice of affordable prescription drugs and which pharmacy they choose to purchase those drugs from.
Mr. Speaker, I want to thank the gentleman, Mr. Collins, for hosting this Special Order today.