Wednesday, April 29, 2015

It’s Pharmaceutical Access, Stupid! Why Can’t Part D Plans Learn That Lesson?



By James Gutman - April 28, 2015

If it’s true that “fool me once, shame on you; fool me twice, shame on me,” then Medicare Part D plans might be feeling a lot of shame right about now. This is because even though CMS has made it super-clear that one of its highest priorities is ensuring pharmaceutical access to Part D beneficiaries, plan sponsors keep getting fined substantial amounts by the agency for violations turned up in plan audits related to access to Rx drugs.

Specifically, there have been 12 civil money penalties (CMPs) related to drug access imposed by CMS just since the beginning of the year, with all but two of them for at least six-figure amounts. The highest of those amounts for “garden variety” pharmaceutical-access violations is the $689,600 Citizens Choice Health Plan was assessed, but that’s not counting the $1 million fine CMS levied against Aetna Inc. this month for erroneously listing nearly 6,000 retail pharmacies as in network for Part D for the 2015 Annual Election Period. The apparently unintentional Aetna violations resulting from its moves to narrower pharmacy networks prompted 3,767 complaints filed by Part D plan members with CMS.

Among the other more common violations CMS has been finding in audits is failing to adjust for changes resulting from new drugs coming on the market or formerly brand drugs going generic after the Part D plans file their formularies with the agency. There are also not furnishing transition supplies of pharmaceuticals to members who change plans, using unapproved utilization-management techniques, not meeting time frames for requested coverage determinations and misclassifying complaints as coverage determinations or lumping appeals with grievances.

And it’s not that CMS hasn’t made clear that this area is a priority because of the potential for harm to beneficiaries. The agency last summer put out a “best-practices” memo outlining what it’s found in audits and saying in no uncertain terms that it’s tired of continuing to see these violations. Partly the issue is, as consultant John Gorman, executive chairman of Gorman Health Group, LLC, points out, that the Part D plans are using pharmacy benefit managers for Rx drug oversight, and some of those PBMs are still finding out what’s involved in transitioning from business-to-business to business-to-consumer organizations. There also are, as Gorman says, “lots of moving pieces” plans have to maneuver to handle drug access correctly. But as ATTAC Consulting CEO Steve Arbaugh notes, many of the problems could be avoided with some common sense, such as furnishing specific reasons for coverage denials and suggesting alternatives, along with monitoring pharmacy claim rejections and doing mock audits.

So why do you think there still apparently are so many problems for Part D plans with pharmaceutical access? Is it that the plan sponsors aren’t keeping the PBMs on a tight-enough leash? Is it that lawyers are advising plans not to furnish too much information to beneficiaries on denials? Is a big factor that making these determinations still is confusing, especially considering all the changes occurring in the Rx drug market each year? And is there one additional factor, as Gorman suggests, that “scores always get settled in the second term of a presidency” and that the Obama administration thus may find it more feasible to achieve its policy goals on pharmaceutical access via regulation than via legislation?


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