CEO Message February 22, 2008
Author: Lynn Rolston
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.
Medi-Cal Checkwrite
Additionally, we've been informed that the recent adjustments to FY 2007/2008 include a deferral of the checkwrite due on June 19, 2008, until after the new FY begins on July 1. Pharmacies will receive a Medi-Cal check around June 16 and, then, will not receive another until after the July 4 holiday. This will create a significant cash flow problem for a lot of you, especially independent pharmacies. We are making you aware of this issue so that you'll be able to plan accordingly.
Alliance for Patient Care
On Thursday afternoon, the Alliance for Patient Care met again to discuss budget cuts to California's healthcare providers. This group is comprised of physician associations and groups, patient advocates, CPhA, chain store representatives and many others whose constituents will be endangered by these drastic cuts. You can find out more about this organization by visiting www.allianceforpatientcare.org. The group discussed, in detail, recently passed legislation containing the cuts, the LAO's report, and strategies for remedying the situation. Strategies ranged from new legislation and legal action to a PR campaign and grassroots efforts with individual legislators throughout California. No single strategy has been singled out yet, but a plan is in the works to help us move ahead. I will have more about this in the coming days.
MTM Conference Call
On Wednesday, CSHP staff and members as well as CPhA staff held a second conference call on how the two organizations could work together to move MTM forward in California. The group is exploring the issue from several new angles and is working to formulate a planning document for this effort. Michael Negrete, CEO of the Pharmacy Foundation of California, agreed to produce the first draft. Some of the strategies considered included legislative efforts as well as outreach to healthcare payors. We will keep you posted on our progress.
NCPDP ePedigree Meeting
This week, Kathy Lynch attended the National Council for Prescription Drug Programs (NCPDP) meeting in Jacksonville, FL to participate in a Focus Group, established to discuss ePedigree standards. Various stakeholders within the drug supply chain attended the meeting, including EPCGlobal. EPCGlobal has an established set of standards that are generally accepted by supply chain partners. Topics discussed included inference, grandfathering of products, and interoperability of the whole system - from manufacturers to the pharmacy providers. Kathy said it was a worthwhile meeting with a dedicated group of individuals who shared like concerns regarding the ability of the members of the drug supply chain, especially independent pharmacies, to comply by the current implementation date of 1/1/09. NCPDP will hold another work group meeting on ePedigree challenges during NCPDPs annual meeting in May.
CA Pharmacy Museum Changes Name to Honor Memory of June Salvatori
During the Outlook 2008 Pharmacy Foundation of California (PFC) Awards and Appreciation Breakfast, it was announced that, with blessings from the Salvatori family and PFC Board of Directors, the Donald F. Salvatori California Pharmacy Museum will now be known as the "Don and June Salvatori California Pharmacy Museum", which is housed at CPhA headquarters here in Sacramento. This change was made to honor the memory of June Salvatori who, for more than a decade, worked tirelessly to achieve and sustain her late husband's dream of a California Pharmacy Museum. June passed away last January after a several month battle with cancer. If you would like to do something to honor June's memory, the family suggests making a donation to the Leukemia & Lymphoma Society, or to PFC in support of the Don and June Salvatori California Pharmacy Museum.
February CMS Call Postponed
The next presentation in the My Health. My Medicare. series of audio-conference training sessions sponsored by the Centers for Medicare & Medicaid Services (CMS) will be held in March 2008. We will provide you with updated information as soon as it becomes available.
CMS Appoints New Regional Administrator - Region IX
CMS announced that David Sayen has been appointed Regional Administrator of the Centers for Medicare & Medicaid Services, Region IX. David is based in San Francisco, and his jurisdiction includes California, Arizona, Nevada, Hawaii, and the Pacific Trust Territories. He replaces Acting Regional Administrator Charlotte Yeh, who is returning to her regular duties as regional administrator of the New England region of CMS.
Online Part Time Master Program
The University of Florida College of Pharmacy has expanded its online, part-time Master of Science in Pharmacy programs. In 2006, they started with a major in Pharmacy Regulation and Policy, and will graduate its first class of students in that major. Beginning in the fall of 2008, they will add three new majors in Applied Pharmacoeconomics, Clinical Research Regulation and Ethics, and Patient Safety & Risk Management. The Pharmacy Regulation and Policy degree could be useful to those working for a chain, wholesaler, PBM, mail order pharmacy, manufacturer, or health plan who deals with a Board of Pharmacy, a Dept of Health Services, an Insurance Agency, a health plan regulator or with the legislative process. The other degree programs would have similar utility specific to area of focus. You can visit the program website: http://pharmreg.dce.ufl.edu/index.html
APhA Book Offer
APhA is offering 20% off of its February book of the month, Diabetes Management Services: A Pharmacist's Resource Guide. By using code BOM2008 you can purchase the book for nonly $123!
In the News
CPhA disseminated a news release regarding Outlook 2008 and this year's award winners. To read the full release, please visit The Earth Times.
Drug Topics magazine recently highlighted the fact that CPhA, along with other organizations, supports universal healthcare coverage. To read the article, click here.
There has been a voluntary recall of Fentanyl patches due to leakage risk. The following is an excerpt regarding this recall: Concerns have been building across North America about the safety of transdermal patches for delivering the highly potent narcotic analgesic fentanyl. To read the full article, click here.
Question of the Week
Dear Lynn,
I recently joined the CPhA Insurance Committee and learned of the relationship CPhA has with Marsh. Can you please explain the difference for CPhA members using Marsh versus other brokers or agents?
Wayne Woods
Answer
Dear Wayne,
Veronica Van Orman, who provides staff leadership for our insurance programs, provided the following answer:
Marsh serves as the exclusive insurance broker and program administrator for the CPhA sponsored insurance programs. They work on behalf of members, not an insurance company. Together, we have developed special insurance programs that provide beneficial plan designs or pricing advantages for our members. For example, pharmacy owners may purchase a Business Owners Liability policy from an insurer through different agents/brokers. However, only one broker in California, Marsh, is able to offer our Fireman's Fund Business Owner's Package policy that provides scope of practice professional liability protection for pharmacists. Members who purchase coverage elsewhere miss out on these member advantages.
Plus, the more members that participate in these programs, the more we are able to continue improve them. For example, Marsh is now introducing MercerSelect HRKnowHow, a human resource tool that helps employers keep up to date with the latest in group benefit issues. It also provides access to compliance information for laws such as COBRA, HIPAA, etc. as well as access to forms employers need. As a CPhA member, you can have access to this resource without charge as long as you purchase your group health insurance through Marsh. Additi onally, CPhA earns royalty income from the sales of sponsored programs. This helps offset Association expenses and relieves pressure to increase dues. If members purchase similar products through other agents and brokers, the association does not earn royalty income. For information on the options available to you, please call Marsh at 888-926-CPhA.
Sincerely,
Lynn Rolston
Chief Executive Officer
California Pharmacists Association