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You CAN Make a Difference in Austin
Pledge Form
We have some great news for you! Working with our attorneys, the Texas Ethics Commission,
the Federal Election Commission and the Internal Revenue Service, we have developed an easy way
for you and your fellow pharmacists to support the outstanding efforts of our political action
committee--AP GPAC.
American Pharmacies stands out from other buying cooperatives as the only such organization
to initiate aggressive legislative and congressional action on behalf of Pharmacy. We
work tirelessly on your behalf to influence the political, legislative and regulatory issues that
impact your ability to keep your pharmacy open and profitable.
The AP GPAC—General Purpose Action Committee—is our entity organized to support or
oppose political candidates and issues favorable to American Pharmacies' stockholders, as well
as the special interests of the independent pharmacy profession. AP GPAC exists as a legal
mechanism for monetary contribution to these efforts. Our track record so far:
MEDICAID
- APRx spearheaded formation of the Texas Pharmacy Medicaid Coalition to oppose a proposal by the Texas Health and Human Services Commission to add a co-pay to vendor drug prescriptions, to reduce pharmacy reimbursement by the amount of the co-pay, and make the co-pay optional for beneficiaries. The coalition filed a lawsuit. Rather than try to defend their actions, HHSC withdrew the co-pay proposal.
- APRx led effort opposing HHSC pharmacy Medicaid fraud & abuse audits, which were thinly disguised fishing expeditions. HHSC quietly discontinued the audits.
- Just before the 2005 Christmas holiday, HHSC revealed a Medicaid drug claim processing contract with First Health. APRx sounded the alarm about the altered payment schedule that would cause significant delays in pharmacy reimbursements. This delay, on top of low and slow Medicare Part D payments, potentially would have caused independent pharmacies such cash-flow problems they would close their business. APRx lobby team alerted key legislative leaders who leaned on HHSC to force First Health to return to the established payment schedule. HHSC returned to the original payment schedule and pharmacies received a catch-up payment.
- APRx lobby team worked very closely with other pharmacy groups to get an increase in the Medicaid dispensing fee from $5.14 to $7.50 to help offset impending AMP implementation in January 2008. The new Medicaid fee went into effect Sept. 1, 2007, increasing Medicaid revenue to Texas pharmacies by $68 million in fiscal year 2008 and $71 million in 2009.
PHARMACY BENEFIT MANAGERS (PBMs)
- APRx developed a comprehensive white paper to educate legislators in 2005 about money lost to PBMs in the state's two retirement systems. A change of prescription bill passed, and elements of PBM reform bills were added. The bill failed on a point of order.
- APRx legal counsel developed a PBM audit manual as a guide for member pharmacies. APRx legal counsel represented many pharmacies facing PBM audits, drastically cutting recoupments.
- APRx introduced five PBM bills in the 2005 legislative session:
- self-referral to mail order pharmacies,
- unauthorized changes of physician prescriptions,
- lack of counseling by mail order pharmacies,
- unfair audit practices, and
- 100 percent pass-through.
- We dramatically increased public policy makers' awareness of PBM business practices, and the Senate Health & Human Services committee held an interim study on PBM practices. The committee recommended the state's two retirement systems review their PBM contracts. APRx-initiated PBM legislation was the only PBM legislation to pass out of committees and be passed by the House and Senate in the 2005 session. Ultimately the bills were trapped, along with 100+ other bills, by the House Speaker controversy.
- APRx financed and initiated a comprehensive communications plan to educate public policy makers, senior citizens, consumers, small businesses, and health benefit managers about PBM business practices. www.medicineandmoney.com is up and running. A major site "relaunch" is in preparation.
TEXAS STATE BOARD OF PHARMACY
- APRx submitted official comments and testified against TSBP's proposed rule on Class A pharmacy security, which potentially would cause many pharmacies to spend thousands of dollars in remodeling costs. TSBP also proposed rules limiting pharmacists' time away from prescription counter. TSBP pulled down the rule and sent it to a task force.
AP GPAC COMMITTEE
- APRx divided Texas into six geographic areas based on state senatorial district. We identified stockholders who have a track record of taking action in the political arena, and appointed one delegate and one alternate for each of six districts. Two APRx board members were appointed by APRx Chairman Lynn Everett, R.Ph. The PAC board is in place and will oversee political contributions to Texas office-holders and candidates who are supportive of independent pharmacy and small business, beginning with the 2008 elections.
FEDERAL LOBBY EFFORTS
- The APRx lobby team has worked very closely with National Community Pharmacists Association staff to assist with pharmacy legislation in Washington, D.C., including
- TRICARE mail order,
- AMP fix,
- prompt pay, and
- business negotiations.
- APRx lobby team traveled to D.C. to meet with Sen. John Cornyn highlighting need for Dept. of Defense budget to continue granting military personnel and their dependents access to local pharmacies by granting federal supply pricing in the retail pharmacy network and freezing co-pays for using retail versus mail order. TRICARE measure passed with Senator Cornyn's support to include the favorable retail pharmacy provisions.
- APRx staff contacts were key to meeting with top White House officials about Medicare Part D problems. Nationwide news coverage of our White House meeting gained widespread support in Congress for Medicare Part D changes and favorable Medicaid AMP fix.
ONGOING ACTIONS
- APRX staff and lobby team continue to successfully intervene and advocate on behalf of our independent pharmacy owners and their patients who encounter individual problems with third parties, PBMs, Medicare Part D, and Medicaid. Our success in this area is directly attributable to our cultivating and maintaining working relationships with all parties.
Here is the legal info:
Currently, American Pharmacies' distributions to its stockholders are reported to you, the
stockholder, via a 1099 Form, which is the United States tax form used for, among other
purposes, reporting payments made to independent contractors.
These distributions are reported to the United States Internal Revenue Service by the tax
identification number you provided to American Pharmacies. Very few of American
Pharmacies' stockholders are organized as sole proprietorships, which are the only business
entities that can legally contribute to the AP GPAC.
All other stockholders organized as business entities other than a sole proprietorship, i.e., a
corporation, must make their contributions to the AP GPAC on a personal level, i.e., with a
personal check.
Please indicate below the amount you want to contribute to the AP GPAC
by designating a deduction from the year-end dividend or generic rebates you
currently receive as a stockholder.
Your Board of Directors already made this pledge!
The amount you select below will be deducted from your year-end dividend or rebate as a
stockholder. This amount MUST be treated as personal income and reported by you to the IRS
on forms which would contain your Social Security number, not your pharmacy's tax
identification number.
Thank you in advance for your contribution. We pledge to use it in the service of Independent Pharmacy.
You can contribute with a deduction in your stockholder rebate.
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