PATIENT CARE IN PERIL?

Transcription

1 PATIENT CARE IN PERIL? THE FUTURE OF PHYSICIAN DISPENSING Webinar Monday, October 17, 2017 Speakers Moderator: Jan E. Berger, MD, MJ Editor in Chief American Journal of Pharmacy Benefits Ricky Newton, CPA Director of Financial Services and Operations Community Oncology Alliance Joshua Cox, Pharm.D., BCPS Pharmacy Director Dayton Physicians Network Jonathan E. Levitt, Esq. Founding Partner Frier & Levitt Ray Bailey, RPh Director of Pharmacy Florida Cancer Specialists Jesse C. Dresser, Esq. Partner Frier & Levitt David J. Coury Chief Executive Officer UroGPO 2 1

2 Our Agenda Today 1. Welcome & Introductions Jan Berger, MD, MJ, Editor in Chief, American Journal of Pharmacy Benefits 2. Overview of the issue & why it matters Ricky Newton, CPA, Director of Financial Services and Operations, Community Oncology Alliance 3. PBM White Paper overview & legal perspective Jonathan E. Levitt, Esq., Founding Partner, Frier & Levitt Jesse C. Dresser, Esq., Partner, Frier & Levitt 4. Patient Impact & Practice Implication Joshua Cox, Pharm.D., BCPS, Pharmacy Director, Dayton Physicians Network Ray Bailey, RPh, Director of Pharmacy, Florida Cancer Specialists David J. Coury, Chief Executive Officer, UroGPO 5. Q&A Session 3 OVERVIEW OF THE ISSUE & WHY THIS MATTERS Ricky Newton, CPA Treasurer & Director of Financial Services and Operations of Community Oncology Alliance (757) rnewton@coacancer.org 2

3 About the Community Oncology Pharmacy Association (COPA) Learn more & join us at:

4 7 CVS Caremark Announcements about CVS/Caremark Insert from this Letter 8 4

5 Announcements about CVS/Caremark 9 Why this Issue is so important If CVS/Caremark is successful in defining what a retail pharmacy is and who should be allowed to be in network then Our patients suffer from lack of care at the point of service, uncoordinated and delayed start of treatment. Costs in the health system increase due to lower adherence, persistence, and waste when patients receive their medications outside of the physicians office. Others PBM s will follow without regard to how this impacts patient care It will get worse: CVS will continue to narrow their definition of what a retail pharmacy is - as might others - and further disallow retail pharmacies to dispense in physician clinics. CVS is redefining state pharmacy laws that have already defined what and who can operate pharmacies within physician clinics and whether retail or physician dispensing is allowed. 10 5

6 Prepared by Frier Levitt, LLC Commissioned by the Community Oncology Alliance August /19/16 Impact Nationally We know of 872 practices with in-house physician dispensing or retail pharmacies that could be impacted: 521 in house physician dispensing oncology practices nationally representing 2,226 oncologists that will not be able to dispense as of January 1, 2017 for CVS/Caremark Part D plans. 351 oncology practices nationally representing 1,492 oncologists with retail pharmacies within their clinics (These practices are not directly affected as of the first of the year but could be in the future). 11 What COA is Doing Hired law firm Frier Levitt, specializing in pharmacy issues, to fight for community oncology: Letter to CVS - August 3 rd Call with CVS - August 24 th White paper on PBMs - August 30 th Coordinating practices State and Federal legislator outreach - Ongoing Patient outreach - Ongoing More Pharmacy Benefit Managers Attack on Physician Dispensing and Impact on Patient Care: Case Study of CVS Caremark s Efforts to Restrict Access to Cancer Care 12 6

7 National Stats on Available Part D Plans for Patients 13 Stats on Available Part D Plans for Patients ** 14 7

8 Ricky Newton, CPA Treasurer & Director of Financial Services and Operations Community Oncology Alliance (757) OVERVIEW OF WHITE PAPER ON RECENT CVS/CAREMARK ACTIONS Jonathan E. Levitt, Esq. and Jesse C. Dresser, Esq. 8

9 WHAT IS CVS/CAREMARKDOING? After our notification, Oncology Association of West Kentucky submitted an application to directly enroll with CVS/caremark; however, our credentialing review determined they did not meet our terms and conditions to be a retail pharmacy provider. Oncology Association of West Kentucky is a two physician practice and nota community retail pharmacy. As such, th ey do not carry a full array of medications for patients as would a community pharmacy. Also, they are also a closed door facility, only treating the patients under their care. Our pharmacy network is comprised of co m m un ity ph armacies th at provide a wide array of drug th erap ies to ou r members. 1) You do not meet CVS/Caremark s definition of a retail pharmacy Outside of not meeting our general requirements for being a community pharmacy with a broad assortment of drug therapies, our ongoing regulatory review also made clear that CMS considers such physician dispensing facilities as out-of-network providers. CMS Med icare Part D rules define sponsor networks as pharmacy only networks, and retail pharmacy is defined as a licensed pharmacy from which enrollees can purchase a drug without being required to receive medical s ervices. CMS has also explicitly stated that covered Part D drugs that are appropriately dispensed and administered in a physician s office will be subject to the same treatmen t under ou r ou t-of-network access rules. Based on a recent in q u iry to CMS, we understand thatcms has notchanged its policy towards non-pharmacy dispensers. 2) Dispensing Physicians are out-ofnetwork providers under Medicare Part D 17 WHO WILL BE AFFECTED? Some industry stakeholders (including CVS/Caremark) have said that beginning January 1, 2017, physician dispensing class of trade will no longer be included in Caremark s Medicare Part D network and this action will not impact physician-owned pharmacies Medicare Part D Plans Physician Owned Pharmacies Dispensing Physicians 18 9

10 WHO MAY BE AFFECTED? However, CVS/Caremark may seek to exclude others if retail terms and conditions are not met: Carry a full array of medications for patients Must not be a closed door facility, only treating patients under their care Provide a wide array of drug therapies Physician Owned Pharmacies Providers Potentially Affected by CVS/Caremark s Actions Dispensing Physicians 19 FINANCIAL MOTIVES OF CVS/CAREMARK BEFORE NOW Oral oncolytics dispensed by physicians or retail pharmacies CVS/Caremark us es PBM to shift business to wholly- own ed pharmac ies Physician in-office administration of IV chemotherapy 20 10

11 10/19/16 WHERE IS THIS COMING FROM? CVS/Caremark points to CMS Medicare Part D Rules relating to pharmacy only sponsor networks, and physician dispensing facilities as out-of-network providers under 42 C.F.R (a)(2) September 2016: CVS/Caremark responds publicly to White Paper, stating that they received guidance from CMS and that CMS agreed with their position 2016 Community O ncology Alli ance 21 ENTER FRIER LEVITT S WHITE PAPER 2016 Community O ncology Alli ance 22 11

12 Medicare Modernization Act of 2003 Enacted under Pub.L , 117 Stat Amended Title XVIII of the Social Security Act Health Insurance for the Aged and Disabled (Title 42, Chap. 7, Subchapter XVIII / 42 U.S.C. 1395, et seq.) 10/19/16 23 These sections have the weight of law Medicare Modernization Act of 2003 iption drug plan shall permit Nothing the participation in this subchapter of any shall be construed to authorize any cy that meets Any the terms and Federal conditions Prohibition Absolutely Patient officer under or employee the planto exercise any supervision or Any Willing individual entitled to insurance benefits under this Against nothing in Enabling P sponsor of the prescription control drug Freedom over plan the shall practice secure of the medicine or the manner in which subchapter Provider may obtain health services from Federal any institution, the statute statute ation in its network of a sufficient medical of services Choice number are of provided, or over the selection, tenure, or Law Interference about (42 U.S.C. agency, or person qualified to participate under this cies that dispense (other than compensation by (42 mail U.S.C. order) of any drugs officer (42 U.S.C. (42 U.S.C. or employee of any 1395hh-100, subchapter if such institution, physician institution, 1395a) agency, or person undertakes to et seq.) to patients 1395w-104) to ensure convenient agency, or access person (consistent providing 1395) health services; dispensing or to exercise any provide him such services. es established by the Secretary). supervision or control over the administration or operation of he definition of pharmacy any defers such to institution, State lawagency, or person. 10/19/

13 These sections have the weight of law Medicare Modernization Act of 2003 Any Willing Provider Law (42 U.S.C. 1395w-104) Patient Freedom of Choice (42 U.S.C. 1395a) Prohibition Against Federal Interference (42 U.S.C. 1395) Absolutely nothing in the statute about physician dispensing Enabling statute (42 U.S.C. 1395hh-100, et seq.) but as limited by the Administrative Procedure Act (5 U.S.C. 551, et seq.) Authorizes HHS (through CMS) to promulgate regulations 10/19/16 25 Medicare Modernization Act of 2003 Any Willing Provider Law (42 U.S.C. 1395w-104) Patient Freedom of Choice (42 U.S.C. 1395a) Prohibition Against Federal Interference (42 U.S.C. 1395) Absolutely nothing in the statute about physician dispensing Enabling statute (42 U.S.C. 1395hh-100, et seq.) but as limited by the Administrative Procedure Act (5 U.S.C. 551, et seq.) Authorizes HHS (through CMS) to promulgate regulations 10/19/

14 These are regulations and are less controlling than specific laws to the contrary Medicare Part D Regulations (Title 42, Part 423 of the Code of Federal Regulations) (a) Out-of-network access to covered part D drugs (1) Out-of-network Network pharmacy means a licensed pharmacy that is under contract with pharmacy access. A Part D sponsor must ensure that Part D enrollees have a Part D sponsor to Pharmacy provide covered network Part D contracting drugs at negotiated requirements. prices to its In estab adequate access to covered Part D drugs dispensed at out-of-network Part D plan enrollees. contracted pharmacy network, a Part D sponsor offeri D Plan Sponsor pharmacies Contract agrees when to agree the enrollees (i) to have a standard Access to Special "Contracted Cannot rules for reasonably pharmacy be network" Definition expected means of to licensed pharmacies, including retail, provisions covered Part D with reasonable obtain such and relevant drugs at a terms network and out-of-network pharmacy; conditions and(ii) of Do prescription not access pharmacy covered drug coverage (i) Must contract with an mail-order, institutional pharmacies under contract with a Part D sponsor [AWP Regs.] drugs tion whereby Part D any drugs (42 C.F.R. (42 C.F.R. willing at an pharmacy out-of-network may pharmacy access the on a routine that basis. meets (2) the Part D sponsor's standard terms and c to provide covered Part D drugs at negotiated prices to Part (42 C.F.R ) (42 C.F.R. D enrollees ) contract and Physician's participate office ) as access. a network A Part D pharmacy. sponsor "Retail pharmacy" must ensure means and that (ii) any Part May licensed D enrollees not pharmacy require a that pharmacy is ) not a mail to order accept insuran have adequate access to vaccines and pharmacy other covered from which Part condition Part D drugs D enrollees of participation could purchase in the a covered Part D Part sponsor's D drug cont appropriately dispensed and administered without by being a physician required pharmacy to in receive a physician's network. medical services from a provider or institution affiliated with that pharmacy office. 10/19/16 27 Medicare Part D Regulations (Title 42, Part 423 of the Code of Federal Regulations) These are regulations and are less controlling than specific laws to the contrary Contract provisions [AWP Regs.] (42 C.F.R ) Special rules for out-of-network access (42 C.F.R ) Definition of pharmacy (42 C.F.R ) Access to covered Part D drugs (42 C.F.R ) 10/19/

15 The explicit statutes contained in the Social Security Act (i.e., AWPL, Freedom of Choice) control Moreover, the regulati ons also contain specific sections relating to AWPL, definiti on of a pharmacy, etc., which support physician dispensers position over any regulation adopted by CMS to the contrary (i.e., physician dispensers as outof-network) 10/19/16 29 CLINICAL AND ECONOMIC BENEFITS OF PHYSICIAN DISPENSING Outcomes Based Reimbursement and the Medicare-sponsored Oncology Care Model Patient Adherence and Monitoring 30 15

16 Jonathan E. Levitt, Esq. Jesse C. Dresser, Esq PATIENT IMPACT & PRACTICE IMPLICATION Ray Bailey, RPh Florida Cancer Specialists Joshua Cox, Pharm.D., BCPS Dayton Physicians Network 16

17 Patient Impact Disruptions in Service Potential loss of Financial Assistance Lost of Practice Integrated EMR Empowered Pharmacy Services Long delays in access as oral chemotherapy scripts must be referred to outside specialty pharmacy Patient losses practice based oral adherence programs Lost of direct physician oversight of oral chemotherapy dispensing Potential for more waste when scripts dispensed outside practice 33 Business Implications for Practice Massive loss of Revenues from high volume of oral regimens Financial stresses that will impact entire practice Loss of control of oral chemotherapy in alternative payment models (OCM) Diminished control of regimens that include oral and IV products. Often causing delays Decreased purchasing volumes could affect GPO contracts Loss of Revenues will inevitably decrease the value added services practices can provide patients on oral chemotherapy Will negatively impact patient outcomes and quality standards 34 17

18 Ray Bailey Josh Cox 35 PATIENT IMPACT & PRACTICE IMPLICATION: UROLOGY PERSPECTIVE David J. Coury Chief Executive Officer UroGPO 18

19 UroGPO In Office Dispensing Initiative A Patient s Right to Choose Ø Ø Ø 199 Community Based Practices 2,932 Healthcare Providers 76 Dispensing Practices Community Urologists are facing exact same battle as Community Oncologists to keep control over patient care PROPRIETARY AND CONFIDENTIAL 37 David Coury

20 Questions? Type your question into the WebEx Q&A box: 1. Look for the green control box at the top of your screen. 2. Move your mouse over to expand the full box. 3. Select the Options on the right. 4. Select Q&A and a new box will pop up. 5. Type your question in the box be sure to send to All panelists 39 Thank you for attending! Full PBM and physician dispensing White Paper is available for download: Online at Slides will be distributed to those that RSVPd later this week. Stay up to date & subscribe to newsletters: COA updates & activities AJPB news & perspective at