FLORHAM PARK, NJ -- (Marketwire) -- 03/19/13 -- The Specialty Pharmacy Association of America (SPAARx), the largest national association representing the broad interests of the specialty pharmacy industry, today announced it will be advocating against the impending cuts to Medicare reimbursement that are being driven by the sequestration process and will go into effect on April 1, 2013.
The proposed 2% cut in reimbursement will apply to drugs dispensed by pharmacies under Medicare Part B, Medicare Part D, and Medicare Advantage plans. These cuts will create an undue hardship for the specialty pharmacy industry that has been increasing patient services within an environment where margins are already being compressed. An additional cut of 2% to the Medicare portion of reimbursement will further depress pharmacy reimbursement causing many specialty drugs to be dispensed at a significant loss.
"Specialty pharmacies will face an unjustified financial burden if government reimbursement under Medicare Part B, Medicare Part D, and Medicare Advantage plans is cut by 2%," said Bill Sullivan, Interim Executive Director of the Specialty Pharmacy Association of America. Sullivan continued, "These pharmacies provide life-saving medications and high touch services for patients suffering from complex disease states. They do so because they are key partners in the care management process for all patients, not just those that may be more profitable. We feel it is unconscionable for the government to ask a business to provide a service at a loss. It is hard to continue to increase the level of care with little or no margins to support the service. If you eliminate margin altogether, you remove any incentive for innovation."
The Specialty Pharmacy Association of America will be advocating for the industry, communicating its position on this issue to the appropriate Congressional committees to inform the legislative process and underscore the need for exceptions.
About Specialty Pharmacy Association of America (SPAARx)
SPAARx is the largest national Association solely dedicated to the interests of all individuals in the specialty pharmacy segment of healthcare. SPAARx is managed and governed by a board of directors comprised of executives from a diverse group of specialty pharmacies and related healthcare providers. This association is vendor-neutral and fully-aligned with the interests of all industry stakeholders. SPAARx is setting industry standards, leading in advocacy and promoting the value of specialty pharmacy through education, publications and member conferences. The association's goal is to protect and promote common industry interests along with fostering professional growth within specialty pharmacy.
Interim Executive Director
Specialty Pharmacy Association of America
100 Campus Drive
Florham Park, NJ 07932
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