PHARMACY

GPhA: FDA’s proposed rule on prescription drug labeling adds $4 billion to healthcare costs

BY Michael Johnsen

WASHINGTON — The Food and Drug Administration’s proposed rule on prescription drug labeling would add $4 billion annually to the nation’s healthcare costs, undercutting the cost savings that generic medicines have brought to America’s patients and healthcare system, according to an analysis released Wednesday by economic consulting firm Matrix Global Advisors.

“Flooding the marketplace with multiple versions of labels for the same medicines would not only seriously jeopardize patient safety, but also would burden consumers, taxpayers, large and small businesses, and state and federal governments with billions of dollars in increased costs for generic medicines,” said Ralph Neas, president and CEO of the Generic Pharmaceutical Association. “The study demonstrates that in proposing this rule, the FDA overlooked its very real financial impact on the affordability and availability of generic medications for patients and all stakeholders in the drug supply chain.”

Of the projected increase in healthcare costs, MGA estimates that Medicare and other government programs will incur $1.5 billion in annual new spending, while private insurers and patients will pay $2.5 billion per year. 

The proposed rule would expose generic drug manufacturers to substantial new tort liability costs, which in turn would require them to adjust prices to stay in business, withdraw products or decline to launch new affordable versions of brand medicines, the report cautioned. Increased liability also would accrue to pharmacists, physicians and the other principal participants in the healthcare system, beyond the substantial confusion for all stakeholders, impeding healthcare decisions and delivery.

“New labeling regulations should protect patients, facilitate care and reduce costs,” Neas said. “Unfortunately, the Proposed Rule does none of these things — the unintended consequences of this rule would be nothing short of catastrophic. The FDA and others need to take a hard look at the potential harmful impact on patient access and national healthcare costs of a Proposed Rule that changes 30 years of law requiring generic and brand medicines to have the same labels, and permits for the first time labeling changes for generic drugs without FDA approval." 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
PHARMACY

Coalition of healthcare industry stakeholders address best practices regarding controlled substances

BY Michael Johnsen

MOUNT PROSPECT, Ill. — The National Association of Boards of Pharmacy, along with a coalition of healthcare industry stakeholders, on Wednesday issued a consensus statement regarding the collaborative steps that will be taken to help ensure the delivery of responsible and effective patient care as it relates to the prescribing and dispensing of controlled substances. 

The agreement indicates the need to work collaboratively to address the prescription drug abuse epidemic and to help practitioners comply with their legal responsibilities for prescribing, dispensing and distributing controlled substances. With the intention of restoring and improving coordination among stakeholders, the 13 participating organizations — which represent physicians, pharmacists, pharmacies, regulatory boards, wholesalers, manufacturers and government agencies — will develop two subsequent consensus documents. The first document will identify the “red flags” that warrant the need to review the legitimacy of controlled substance prescriptions. The second document will outline the actions stakeholder organizations will take to improve dialogue so that such red flags are addressed in compliance with federal and state law, and so that practitioners are supported in delivering the most appropriate patient care. 

While some policies recently implemented by stakeholders were intended to protect patients and prevent prescription drug abuse, participants agreed that coordination and collaboration must be improved to ensure that this public health problem is addressed and that patients receive responsible and effective patient care. Additionally, participants recognized that such policies were implemented to help practitioners comply with regulations and were not intended to “intrude into the scopes of practice or authority of other stakeholders.” The forthcoming consensus documents are intended to restore and improve collaboration among all health care practitioners, and to eliminate confusion caused by “the diversity of current proprietary policies.” 

“The dialogue and consensus among organizations representing the spectrum of the healthcare team will be instrumental in ensuring that patients with legitimate medical needs receive the most appropriate and safest medication therapy,” said Karen Ryle, president NABP. “By coordinating on actions that help reduce rates of prescription drug abuse, the forthcoming stakeholder discussions and ongoing collaboration will benefit patient care and the public health.” 

The consensus document was the result of stakeholder meetings convened by NABP in October 2013 and December 2013. The document was finalized at the December meeting and was developed by NABP and the following organizations: American Academy of Family Physicians, American Medical Association, American Osteopathic Association, Cardinal Health, CVS Caremark, Federation of State Medical Boards, National Association of Chain Drug Stores, National Community Pharmacists Association, Pharmaceutical Care Management Association, Pharmaceutical Research and Manufacturers of America, Rite Aid and Walgreens. 

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
PHARMACY

New York’s online database of drug prescriptions curtailing ‘doctor shopping’

BY Michael Johnsen

ALBANY, N.Y. — The Associated Press on Tuesday reported that New York’s online database of drug prescriptions has curtailed "doctor shopping" by 75%, citing New York Health Commissioner Nirav Shah. 

The Internet System for Tracking Over-Prescribing, called I-STOP, began operating in August, AP reported. 

According to the report, more than 66,000 practitioners have used it more than 7 million times to check prescriptions on nearly 3 million patients.

 

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?