Mississippi State Board of Pharmacy Backs Down After PCMA Threatens Lawsuit
From the article:
The overreach by the Mississippi BoP and ensuing legal challenge by the Pharmaceutical Care Management Association (PCMA) should give policymakers in other states pause when considering granting sweeping new authority to state boards of pharmacy, the association said today.
The Federal Trade Commission warned the Mississippi legislature when it transferred regulatory authority from the Insurance Commission to the Board of Pharmacy that allowing pharmacists to regulate PBMs could “increase pharmaceutical prices and reduce competition” and potentially “facilitate collusion” among pharmacies
Could it be that if the BOP’s were allowed to oversee these PBM’s that it could rescind them as being part of the “insurance industry”…
The insurance industry was given an exemption from The Sherman Antitrust Act by the McCarran-Ferguson Act (1945) http://en.wikipedia.org/wiki/McCarran-Ferguson_Act
If the PBM’s were no longer part of the “insurance industry”… could they lose this exemption? Without this exemption… pharmacies could then ban together and really “negotiate” the fees that they are willing to accept under third party agreements.. as well as the content/terms of those same agreements.
Now that nearly all of the insurance industry has demutalized – became publically held companies and the reason for the Sherman Act exemption no longer exists… maybe the pharmacy industry – and the patient we serve – would be better served in trying to get the McCarran Ferguson Act repealed.
Filed under: General Problems
Who has the most political clout…the pharmacies or the insurance companies? Now you know why they have ‘special privileges’ that don’t apply to other segments of the healthcare industry. Of course, repeal the McCarran Ferguson Act and lets see how the insurance companies fare against the pharmacies. In other words, lets create a fair playing feel. But, the function of Congress, has pretty much been, one of creating unfair playing feels. Congress caters to the special interests with the big money and to the big money lobbyists. This leaves an unfair playing field. Pharmacies are at a disadvantage when it comes to negotiating with insurance companies.