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Articles and Updates
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| | | Legislative Update May 5, 2008 Last Updated:
May 5 2008 12:00AM Budget discussions for fiscal year '08-'09 are continuing. The budget discussions going on now are separate from actions taken as part of the fiscal emergency called by the Governor in January. We anticipate a better picture of the State's revenue and an overall fiscal update when the May revise is released the week of May 12th.
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| | | CEO Message May 2, 2008 Last Updated:
May 2 2008 12:00AM Budget Cut Update This week we continued to move full steam ahead with our PR campaign. We had calls with many supporters around the state including pharmacists, the Alliance for Patient Care, our pharmacy coalition, APhA staff members and with the California Chronic Care Coalition (CCCC)...
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| | | CEO Message April 25, 2008 Last Updated:
Apr 25 2008 12:00AM On Monday, the first lawsuit was filed in Los Angeles Superior Court to enjoin the 10 percent cut in Medi-Cal provider payments. The attorney who filed this suit is Lynn S. Carman of Novato. The suit was filed on behalf of the largest California independent living center, two southland pharmacies and two Medi-Cal recipients. We'll keep you posted on the progress of this action.
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| | | CEO Message April 18, 2008 Last Updated:
Apr 22 2008 6:57PM On Wednesday, CPhA hosted its Annual CPhA Legislative Day. It was a huge success as more than 375 pharmacists and student pharmacists, many wearing white coats, joined us in Sacramento. CPhA staff was able to make appointments with more than 2/3rds of the legislators and many of the visiting teams made additional appointments. During these visits, members discussed the Governor's cuts to Medi-Cal that begin on July 1, 2008 and urged legislators to vote YES on AB 2535 (CPhA sponsored), which deals with inadequate reimbursement to pharmacy providers. Additionally, they discussed our support if amended position on SB 1307, which will, among other things, extend the date for implementation of e-Pedigree for pharmacies to July 1, 2012. During the course of the day, we attended a rally at the Capitol in support of the Alzheimer's Association and its fight against the Governor's cuts. You may read our news release by clicking here. I'd also like to share with you some of the compliments we received for this year’s Legislative Day...
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| | | Legislative Update April 7, 2008 Last Updated:
Apr 7 2008 12:00AM The Assembly Health Committee met on Tuesday, April 1, 2008. Assembly Member Dr. Edward Hernandez, author of AB 2535 (a CPhA sponsored bill that seeks to address the inadequacies of pharmacy reimbursement) did a great job in presenting the bill. I testified along with our contract lobbyist, Jim Gross, on behalf of CPhA and its member pharmacists regarding the importance of fair pharmacy reimbursement and the various and continuous cuts to pharmacy reimbursement stemming from laws passed at the federal level. The current impending 10% state cut to pharmacy reimbursement along with the potentially devastating results if such cut is implemented was also highlighted in our testimony. Our pharmacy partners, CRA, NACDS, Walgreen's and Rite Aid, all testified in support of CPhA's bill. The Department of Health Care Services (DHCS) concisely addressed the recently released Survey of Dispensing and Acquisition Costs of Pharmaceuticals conducted by Myers and Stauffer at the request of DHCS. We fully recognize all of the issues facing pharmacy and will keep you posted as we continue to work to address them in the legislative session.
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| | | CEO Message April 4, 2008 Last Updated:
Apr 17 2008 2:39PM Update on 10 Percent Budget Cuts Over the course of the last week, nearly all of the elements of our plan to fight the 10% Medi-Cal cuts have sprung into action. We agreed to engage the same attorneys that NCPA and NACDS used to stop AMP implementation. We believe they have sound theories and a strong chance of prevailing. Additionally, we'll be joining the California Medical Association suit. The cost of dispensing study is fully underway and both chain and independent pharmacies will be contacted, starting next week, to get data into the system as quickly as possible. We plan to produce the first data set in May and will use this study as a comparison to the California study by Myers and Stauffer. Further, our PR campaign will begin to be visible next week. We have many other activities underway so please know that we are doing everything we possibly can and welcome your ideas and participation at any time. Contact me directly at lrolston@cpha.com.
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| | | CEO Message March 28, 2008 Last Updated:
Mar 27 2008 12:00AM Today, the Department of Health Care Services released the long overdue Myers & Stauffer study from last year on pharmacy dispensing and acquisition costs. As expected, the study concluded that the current Medi-Cal dispensing fee is well below the average cost of dispensing, finding that the statewide average (mean) cost of dispensing, weighted by Medi-Cal volume, was $10.81 per prescription. This result does not include any allowance for a reasonable profit for the pharmacy. Based on Myers & Stauffer report, the dispensing fee would need to be increased by almost 50% to cover actual dispensing costs. However, the report also concluded that pharmacies were still making adequate margin on the “spread” between what Medi-Cal pays for covered drugs and the pharmacies’ actual drug costs to more than compensate for the shortfall. The study did not, however, take into consideration in its analysis the impact of the shift to AMP-based reimbursement for all prescription drugs that was included in last year’s State Budget. That change will largely negate the margins Myers & Stauffer found related to drug product acquisition. CPhA will continue to analyze the entire report and will provide more information as it becomes available. You can view the report by clicking here.
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| | | CEO Message March 21, 2008 Last Updated:
Mar 21 2008 12:00AM Important Update and Action Requests Regarding the 10% Budget Cuts
CPhA helped form a huge coalition of pharmacy partners and patient advocates to fight the 10% Medi-Cal cuts and to prevent the potential patient harm these cuts could cause. We are in the process of engaging a PR firm, a legal firm, a grassroots effort, media outreach, and more to protect California's pharmacy patients. This effort is going to be extremely costly and while the CPhA board allocated significant funding for this effort, we need your help as well. Today, we established a Pharmacy Defense Fund for California. You can make your contribution by clicking on the logo on at www.cpha.com.
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| | | Legislative Update March 17, 2008 Last Updated:
Mar 17 2008 12:00AM CPhA's Legislative Day 2008 will be held on Wednesday, April 16th. Due to all of the issues facing pharmacy in 2008, we have extended the opportunity to register to March 21, 2008. If you register after that date we will not be able to schedule an appointment with you and your Legislator. As you are aware, the 2008 Legislative Session is fully underway and there is great concern regarding the 10% budget cuts scheduled to go into effect on July 1, 2008. These cuts will impact both the ingredient cost and the dispensing fee and will adversely affect every pharmacist practicing in the State of California! We need to blanket the Capitol in white coats on April 16th! Please go to www.cpha.com/legday to register TODAY!
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| | | CEO Message March 14, 2008 Last Updated:
Mar 26 2008 11:45AM Medi-Cal Provider Cuts Update
On Monday, the Assembly Subcommittee on Health and Human Services met to consider the 10% budget cuts to Medi-Cal providers as well as potential solutions offered by the Legislative Analyst. President Paul Lofholm and Past Presidents John Tilley and Brian Komoto came to Sacramento to testify about the impact that these provider cuts will have on pharmacists, due to the fact that they cut the dispensing fee and the drug cost reimbursement. The group, which included Kathy Lynch and myself, Heidi Barsuglia with the California Retailers Association, Jennifer Hendrick Snyder with NACDS and several other lobbyists, met with many key legislators, staffers and decision makers to tell our story. The four hour hearing began at 4 p.m. and was extremely contentious. The testimony on behalf of pharmacy was very compelling and included excellent testimony by Paul, John and Brian. This was only the beginning of many hearings that will be called in the coming weeks. We have considerable work being done behind the scenes on this issue and we will keep you updated as we move forward.
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| | | CEO Message March 7, 2008 Last Updated:
Mar 7 2008 12:00AM CPhA Board Takes Action on 10% Budget Cuts
This week, the Executive/Audit and Finance Committee and the full CPhA Board held two emergency conference calls to consider an urgent funding allocation to combat the 10 percent provider cuts. The Committee voted to recommend, and the board approved, significant funding for a seven pronged effort to protect pharmacy patients, both Medi-Cal and others, who would be seriously impacted if these cuts were to go through on July 1, 2008. These cuts will be devastating and may cause closures and cut backs at many pharmacies. The Board is very concerned that this will cause disruption in medication supplies for patients, potential destabilization for patients, longer lines, and could potentially contribute to more medication errors. They felt it was imperative that CPhA undertake a major effort to stop these cuts and help Californians avoid these problems. As we begin implementing our plans, we will provide you with more information.
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| | | CEO Message February 29, 2008 Last Updated:
Mar 5 2008 12:30PM Community pharmacy, both independents and chains, is expressing greater and greater concern over the 10 percent budget cut scheduled to go into effect on July 1, 2008. It will reduce Medi-Cal payments to pharmacy on both ingredient costs and dispensing fees. Considerable activity is underway to fight these cuts and to help the state find alternatives. This week, CPhA staff and leadership met with a number of concerned owner members to talk about specific strategies and directions. The plan and implementation timeline will be coming out shortly to outline our multi-pronged approach for fighting on behalf of community pharmacy and the many, many patients they serve, who could be seriously harmed by the Governor's actions.
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| | | CEO Message February 22, 2008 Last Updated:
Feb 22 2008 12:00AM LAO Revised Budget Proposal
On Wednesday, the Legislative Analyst Office (LAO) released their report on the impact of the recently passed budget cuts for California. Click here to review the report in full. Note: provider cuts information is on pages 34-39. As you can see, the provider cuts to pharmacy are shown as $86 million, and taken with the federal match would total $172 million. These cuts to pharmacy reimbursements will be achieved when EDS calculates each payment to pharmacy and reduces that total by 10 percent, this includes a cut to the drug cost component as well as the dispensing fee. As I stated before, these cuts will be devastating. We will continue working to formulate the best possible strategy to combat these cuts. Please note that the cuts are due to begin on 7/01/08 at the beginning the 2008/2009 Fiscal Year and are scheduled to continue indefinitely.
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| | | Legislative Update February 19, 2008 Last Updated:
Feb 21 2008 12:50PM Monday, February 18th was a Legislative Holiday. Last Friday, the Senate and Assembly approved legislation that would impose a 10% reduction in all state programs including Medi-Cal provider reimbursement. The Governor, as expected, signed the series of bills that achieve the majority of the cuts he proposed in early January when he declared a Fiscal State of Emergency in California. The cut 10% to providers is currently scheduled to go into effect on July 1, 2008. CPhA, our pharmacy partners and other provider allies are putting plans in place to fight these disastrous cuts.
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| | | Legislative Update February 11, 2008 Last Updated:
Feb 14 2008 2:05PM Yesterday was a Legislative Holiday. We anticipate that there will be a vote this week on the Governor's proposed mid-year budget cuts in both the Senate and Assembly. Since the proposal came in connection with the special session for the Fiscal Emergency, the hearings are not set sometimes until a day or two before they take place. We continue to meet with Legislators on this issue to relay our firm opposition against the 10% proposed cut to providers. Please stay tuned for updates on the events at the Capitol.
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| | | CEO Message February 8, 2008 Last Updated:
Feb 14 2008 2:13PM Outlook 2008 is in full swing. The early numbers coming in show this year's Outlook to be every bit as successful as last year and likely to significantly surpass last year's numbers. Our annual conference began yesterday with CE, the patient counseling competition and the House of Delegates opening session, which included the Presidential address by the 2008 CPhA president, Paul Lofholm. Following the House of Delegates, two very fun social events took place including the McKesson sponsored President's Reception, which featured the band Mumbo Gumbo, and the sold-out Hygeia Bowl-A-thon! Everybody had a great time at these events.
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| | | Legislative Update February 5, 2008 Last Updated:
Feb 5 2008 1:00PM The Senate Committee on Budget and Fiscal Review met today to hear from the Administration and affected parties, regarding the Governor's proposed budget cuts. After the Administration made its presentations, a series of individuals and groups testified in opposition to the proposed actions.
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| | | CEO Message february 1, 2008 Last Updated:
Feb 1 2008 12:00AM The CPhA staff is busy putting the finishing touches on what promises to be an outstanding Outlook 2008 meeting in Sacramento next week. The meeting begins on Thursday at 9:00am, when the registration desk opens in the Hyatt Regency. We are eager to greet all CPhA members and their guests and look forward to all the great events we have lined up for you.
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| | | Legislative Update January 28, 2008 Last Updated:
Jan 28 2008 12:00AM Last week, the Senate Health Committee held a hearing on ABx1 1 (Nunez), the health care reform proposal supported by the Governor and Speaker Nunez. There was extensive testimony from all parties. Today, the Senate Health Committee voted on the bill. ABx1 1 did not have the sufficient votes to make it out of the Senate Health Committee. Typically the author would ask for reconsideration of the bill but the Speaker declined this option due to the numerous “no” votes from the members of the Senate Health Committee. During the hearing, many legislators reasserted their commitment to working on health care reform, specifically the efforts to provide health care coverage to children. More information on where these efforts should be provided during the next few weeks.
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| | | CEO Message January 25, 2008 Last Updated:
Jan 25 2008 12:00AM After the recent news coverage regarding Vytorin and Zetia, Richard K. Murray, Vice President, External Medical and Scientific Affairs, US Pharmaceuticals, Merck and Craig B. Granowitz, Vice President Global Medical Affairs, Schering-Plough, sent out an update letter regarding the products.
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