Minor Victory in Battle with PBM in Iowa

Previously I reported that a PBM had been making headlines in Arkansas, with the Arkansas Pharmacy Association and their legislature working to correct severe cuts being made to their local pharmacists (Arkansas Leads the Way Against Anti-Competitive Actions of PBM). Similar issues have been observed in Iowa, with pharmacists in the state pushing the Iowa Pharmacy Association and state legislators. They quickly responded to the call to action and continue to fight for local pharmacies being reimbursed fairly.

Today, the Iowa Pharmacy Association announced that their work appears to be having some positive benefits.  From a news release from the IPA:

…in response to IPA outreach and concern, they’ve conducted an internal analysis and will be making an adjustment to their pharmacy reimbursement in Iowa. This adjustment will be made later this week, or early next week at the latest.

At this point in time, the PBM has not agreed to make these changes retroactive. It is my belief that this is a tactical mistake by the PBM. Additionally, the scope of the changes will take time to analyze and it will not be clear for quite some time if the adjustments are fair.

So while it is too early to celebrate, it is satisfying to know that a grass-roots movement can escalate into a wave of support. The pressure that this support put on the PBM appears to have had some impact. While not a clinical intervention, this is yet another example of Making Every Encounter Count.

Arkansas Leads the Way Against Anti-Competitive Actions of PBM

Recently, a prominent national PBM made significant and severe adjustments to their Maximum Allowable Cost (MAC) rates for generic drugs. As a result, here in Iowa we have seen a staggering increase in our Underwater (paid less than it costs us to purchase) generic prescriptions. The week that this change is obvious in the graphic below.

Change in Underwater (paid less than cost) claims from a given PBM. December into January 2018

The data shown above is for one of our pharmacies and represents the percentage of underwater generic prescription claims for each given week from December to January. All of our pharmacies show the same dramatic increase in underwater claims. However, this did not only happen in our pharmacies. It did not even just occur in our State. It has happened elsewhere around the United States as well, with the State of Arkansas taking a lead investigating this problem and taking actions. It is interesting to note that among the reported findings, the PBM in question, which also owns a chain of brick and mortar pharmacies, may actually be paying itself at a higher rate than they are paying independent pharmacies. If true, this anti-competitive behavior may prove a catalyst in the groundswell of bad press hitting the PBM industry.

Please take some time to view an interesting press conference held recently in Arkansas which outlines some of their findings. It is quite illuminating. Follow this link. The State of Iowa appears to be interested in beginning investigations in a manner similar to Arkansas. Other states are likely to follow if these findings hold up and new examples continue to be revealed.

Make no mistake, even if State and Federal legislators begin to take action now, it will be quite some time to reverse the negative actions that have and continue to jeopardize local independent pharmacies around the country. Hang on, as this might be an interesting ride.

Am I a Part of the Problem or a Part of the Solution?

We serve a patient with severe mental disabilities living in a group home. He has full time staff assisting him with his medications. Our pharmacy provides the patient’s medications packaged to meet the rules and regulations for this type of residential care facility. These packaged medications are delivered in monthly installments.

The prescription drug plan the patient uses made some changes with the new year, and one specific change created a problem. With the new year, one important medications now requires a prior authorization. The appropriate paperwork was initiated immediately, with our pharmacy providing much of the basic information directly to the physician to be submitted. This included the quantity needed and the need for a 31 day day-supply as is required for the group home’s monthly delivery of packaged medications.

At this point it is important to note that the medication was delivered to the facility before the first day of the month to the group home. Billing could not be done until the first day of the month and until that point it was not known that a prior authorization would now be needed. We went out of our way to ensure that the patient would not be without the medications they required.

Five days after submitting the prior authorization, approval was granted. When our staff went to bill the medication that had already been delivered and was already being used, they once again received a reject. The insurance, despite the approved prior authorization, would only pay for a 30 day supply of the medication.

For most members of this drug plan, this would not a problem. But in the case of our group home resident, this change creates a logistical issue. Some months, including January, have 31 days in them.

This is where the painful part of the story starts. Talking with the Prior Auth department of the plan we were told that they could not approve more than a 30 day supply. They suggested calling the customer service phone number and asking an exception to be granted. As I was trying to support the group home staff and care for my patient, I did as asked.

During this call I was shuttled to multiple departments. Eventually I spoke with someone that appeared to understand the issue and was going to get me to someone who could help. Once I got there, however, I ran into a brick wall. I wish I could say that this was unexpected.

My request was simple. Put an exception into place to allow a 31 day supply of the drug. I was told that because I was the pharmacist and not the prescriber or the patient that I could not do this. Those that know me will immediately recognize that this upsets me. I continued the call, escalating to a supervisor who simply read off their cue cards the same information. It was not until I mentioned that I was going to complain to CMS that something changed.

After hearing me threaten to complain to CMS, I was put on hold. When they cam back, I was returned to the technician who immediately began to attempt to fix the problem. Her attempt to put the exception in place required her to make some of the same calls I previously made during this process. I noted with some satisfaction that she had difficulty negotiating the same phone tree prompts I have been using over the past two hours. During this process, she was disconnected from both her own company’s phone tree, and from me.

After spending over 120 minutes on the phone I now have to start over: I was back at square one.

Patient care is not only complex from a medication perspective, but also because of the need to jump through arbitrary hoops imposed by the health plans and their benefit managers. We are very aware that in caring for our patients, one size does not fit all. Unfortunately, many healthcare plans and their pharmacy benefit managers do not seem capable of understanding this concept. Our patients are not just faceless nondescript beings. They are living, breathing individuals. We need to ensure that they are achieving their therapeutic outcomes. We need to ensure they are getting the best possible benefit from the healthcare dollars that are being spent on their behalf.

The problem as I see it is that the plans, to a large extent, have failed to comprehend the larger picture. They have allowed the PBMs to describe the benefits of pharmacy only in terms of drug spend. With their focus on the drug product, and not on care and outcomes, the patient and the plan lose.

It is time for the plans and their benefit managers to start working to be a part of the solution, and not be a part of the problem.

Remember, caring for patients is not easy. You may not succeed every time, but don’t give up. Make Every Encounter Count

Sometimes There Isn’t a “Right” Answer

In a modern pharmacy, specialized systems and software assist the pharmacist in identifying potentially important issues important to patients. It is important to recognize that while these aids are invaluable, they also require sound clinical judgement and an underlying knowledge of the disease states and pharmacotherapy involved. I would like to share an example in this edition of Tales from the Counter.

Our patient was just released from a hospital and the History of Present Illness (HPI) was remarkable for:

  • ischemic stroke treated with Tissue Plasminogen Activator (TPA)
  • hemorrhagic complications from the TPA and
  • glaucoma (unspecified) being treated with dorzalamide, timolol and lantanoprost.

The discharge orders included a prescription for methylphenidate 5 mg daily without any diagnosis information provided. After reviewing the HPI, it was determined that the methylphenidate was being used off-label to treat post-stroke depression.

Because we put diagnosis information in our pharmacy management system, automated screening performed by our system includes drug-disease interactions. In this specific case the following warning appeared:

This medication is contraindicated in patients with glaucoma.

Other drug-disease interaction sources list the same contraindication. Facts and Comparisons Interactions, for example, labels this issue with a severity level of Not Recommended.

Whenever any type of automatic screening alert presents, the pharmacist needs to pay attention. The reason, however, is not necessarily what many might expect. A health care provider can be sued for negligence for ignoring a warning, but they can also be held negligent for heeding the warning and withholding or delaying treatment.  The pharmacist needs to pay attention to the provided information and document what they did with the information and why they decided on their course of action.

The first step is understanding exactly what the computer generated warning actually means. A quick search of the literature revealed that this contraindication is poorly documented. The use of methylphenidate in patients with glaucoma has the potential to increase intra-ocular pressure. The increase appears to be dose dependent: most of the reports in the literature cite doses more than 30 mg of methylphenidate

If one wanted to avoid this interaction, they would consider another treatment option for the depression. However, alternate drugs that could be used to treat depression also have their potential issues in this patient. Tricyclics like nortriptyline must be used with caution as they also interact with glaucoma (severity is listed as Extreme Caution by Facts and Comparisons). Drugs like escitalopram are associated with an increase the risk of bleeding events; a drug-disease interaction with the hemorrhagic stroke recently treated. This interaction’s severity level—Extreme Caution.

The alternatives to treating the depression are therefore somewhat limited by the patient’s HPI. The alternatives really boil down two options:

  1. Do not treat the post-stroke depression
  2. Treat the depression and manage any associated risk

There is no right or wrong answer here. We elected to dispense the methylphenidate along with documentation to the prescribing physician that included a recommendation to monitor the response of the patient’s intra-ocular pressures. The rationale was that the low dose methylphenidate was less likely to create problems with the glaucoma and would not further increase the risk of hemorrhagic stroke. There are certainly other possible answers, but the others also involve some level of associated risk. The important part is the act of documenting.