Jan. 02. 2020

 

To Dear Donald Trump President, Secretary of Human Resource Dept, Political leaders, Pharmaceutical leaders, CEO of local state Pharmacy association, Dean of the school of pharmacy in University and my fellow pharmacist colleague members:

 

 Aug 21. 2018, After fifty-nine Years run De Soto Pharmacy in Canoga Park near North of Los Angeles area has closed.  Jan. 19.2017, After seventy years of well running L.M. Caldwell Pharmacy, Santa Barbara Ca has shut down due to the low cash flow in business. In the earlier year of 2016, half century running Pacoima’s Laurel Pharmacy also closed due to the low PBM reimbursement and high expense of running business.

 

As one of independent pharmacy owner, I have circulated the issues for keeping better healthcare system or reform of our unbalanced system to related political leaders, and pharmaceutical leaders. We need to pay attention of this issue and help to keep more secure business model as a caregiver pharmacy in our community.

 

1.      PBM(Insurance Company) should pay dispensing fee with % of Drug Cost:

 

Community Pharmacy should receive affordable dispensing fee in each prescription claim by PBM. Since PBM are managing independently, therefore, PBM decide dispensing fee or drug cost such a lower than the cost we purchased. Gov. should take a role to stop paying negative drug cost.

2.    

           Please Remove Dir fee:

 

This is a very unfair charge back rule from PBM(Medicare Insurance Company) and they take back the amount 3-5% among they obligate amount to the pharmacy. This means PBM calculate the percentage of non-compliance rate from high blood pressure, Diabetes, high lipid medication users and they craw back the calculated money, even good compliance rate they craw back anyway. I do not know how they established this unfair rule at first.  but I presume to know if we(pharmacy) are keep maintaining to patient compliance then eventually the patient reduce to visit their Drs/hospitals, eventually reduce healthcare cost. However, that is not true. Each independent pharmacies are losing $10,000- &15,000 yearly this reason.

3.    

           PBM should stop dealing with drug manufacture:

 

 Diabetes blood test strips are OTC, many different brand cost are average to $25.00 wholesale and            $40.00 retail per 100 strip. The patient has choice and select their favor brand and favor price. However, PBM and manufacture have relationship and only cover for special brand to each Medicare plan. In this case PBM would not pay enough for special selected brand. For example, Freestyle strip cost are $138.00/ 100 strips, but PBM pay to pharmacy lower than $138.00 cost.

 

4.      PBM should not select Preferred Plan for Medicare patient:

 

Preferred plan patient has different co-pay program to community pharmacy and Chain Pharmacy which is absolutely unfair business practice. It caused the patient cannot chose their right to use pharmacy.

5.   

          Chain Pharmacy should not own PBM because of conflict of Interest:

 

Since Bureaucracy allow Chain Pharmacy could own PBM, they are dealing with drug manufacture favor item only covered for their own plan and possible rebate accept, therefore, drug cost raise skyrocketing higher. Ordinary diabetic strip 1box cost $25.00 but special offered item which covered by PBM are $80.00 for 1 box.

 

I have been practicing pharmacy business since 1969 and I have always been proud of my profession as it has been a pleasure helping my patient. However, these days I do now feel so desperate about being able to stay in my profession because of the many unfair and greedy market change. It looks like if I buy more at this high product cost, not only have I not made any profitable business but also I am being complicit in this bad business practice. Everyone pays close attention to the keeping of fair and balanced American Value standards.

 

Please help and save our small community pharmacies and keep continue to serve our individual patients.

Thank you very much for your attention and God Blessed America.

 

Jae K. Shin R.Ph

Jays Drug: 3154 W. Olympic Blvd. Los Angeles Ca 90006  Tel)323-810-3360  Fax)805-388-5889  jaysrx@gmail.com

 

To: Dear My fellow Colleague Pharmacists !

 

By the passing the year after year, our community pharmacies are struggled to maintain the business. It’s time we need to stop to stay a look for it. Let us express our right and fair business practice by unlawful PBM company. Please join my petition and send your own complain/fairly healthcare reform ideas to politic leaders at least more than 20 each of our member pharmacist.

 

Thank you very much.

 

Jae Shin R.Ph

 

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