NCPA joins NACDS to argue for pharmacy protections in new Medicare Part D $2 drug list model

NCPA May 15, 2024

NCPA joined the National Association of Chain Drug Stores (NACDS) in a letter to CMS advocating for implementing reasonable reimbursement guardrails for pharmacies in a Medicare $2 drug list model. Under this model, Part D plans would be encouraged to offer a standardized list of approximately 150 generic drugs with a maximum co-payment of $2 for a one-month supply. This model was launched in response to the President’s Executive Order to lower drug costs for Americans. To ensure protection for pharmacies under this model, NCPA and NACDS called on CMS to provide fair and transparent reimbursement for the generic drugs on the list; require plans and PBMs to include all pharmacies that offer the generic drugs on the list in their networks and prohibit any network restrictions or patient steering to an affiliated pharmacy that would restrict beneficiary choice; require plans and PBMs to ensure reasonable and relevant contract terms and conditions with pharmacies; monitor the effect of the $2 drug model on pharmacy reimbursement and viability, beneficiary access and satisfaction and adjust the model as needed to protect the interests of pharmacies and the beneficiaries they serve; and delay the model’s implementation until 2026 and/or start with a smaller subset of drugs commonly prescribed and dispensed generics to help the drug supply chain prepare and understand the downstream effects of the model on community pharmacies.