Dear Colleague,
Cigna's chief executive David Cordani told investors recently that he plans to more aggressively defend Express Scripts, which helped the insurance conglomerate increase revenue 25 percent last quarter to $60.5 billion. Much of that windfall came from spread pricing and below-cost reimbursements to pharmacies, of course, and Cordani knows that the gravy train could slow down if Congress and the agencies finally crack down.
In addition to spending millions more on lobbying and dishonest "public education" campaigns that depict PBMs as patient advocates and taxpayer watchdogs, Cordani says they'll "work more with independent pharmacies." If that sounds familiar, it's because he said the same thing last year when ESI announced the creation of its Independent Pharmacy Advisory Committee (IPAC). It seemed like a public relations stunt then, as I pointed out this April in a letter asking him and ESI CEO Adam Kautzner for clarity on when they'll return the illegal "bonus-pool fees" for which most community pharmacies are still waiting. Neither of them ever responded to the letter.
Another flimsy public relations stunt is ESI's rural pharmacy program, which ESI claims pays 700 pharmacies higher reimbursements. We've not heard from any of those pharmacies, despite that a very large chunk of our membership is concentrated in rural areas. Even if it's true, 700 is only a tiny percentage of the 19,000-plus independent pharmacies in the country that ESI is starving with below-cost reimbursements.
Cordani is trying to calm jittery investors now because, as I reported two weeks ago, their public relations schemes aren't working. In fact, the heat has never been higher on the PBMs. Our top legislative priorities have bipartisan support in Congress, and they have greater momentum thanks to recent investigations by the House Oversight Committee, the FTC, and several national news outlets.
Our national campaign, Finish the Fight, has already encouraged more than 25,000 patients to write their members of Congress to demand reform. That matches the thousands of letters that pharmacists have also sent this year.
Congress is in recess now, which means they're back in their states and districts to meet constituents and campaign for reelection. It's a great opportunity for you to turn up the heat. Every summer, NCPA organizes a Month of Action, during which we help members set up pharmacy visits for their federal representatives. We've extended it this year to August and October, when we know members of Congress will be home.
Politicians love photo opportunities, so they'll be eager to visit your store. That's your chance to educate them and the media on how PBMs like ESI, Optum Rx, and CVS Caremark are making it hard to keep your doors open. Make sure you get them behind the counter, where the "magic" happens. It'll change their perception of community pharmacy for the rest of their careers.
Almost 200 NCPA members have already expressed an interest in setting up a pharmacy visit, and we would love to help you schedule one. Contact [email protected] on our grassroots team. You can also learn more here. In the meantime, we'll keep the heat up.
Best,
B. Douglas Hoey, Pharmacist, MBA
NCPA CEO
P.S. If you're watching CNN this weekend, our newest Finish the Fight campaign ad will be airing at the following times: Friday, August 9, 10:34 pm ET; Saturday, August 10, 10:18 pm ET; Sunday, August 11, 10:42 pm ET. Note: these times are subject to change because of breaking news.
