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Ignagni Testifies on Progress of Medicare Prescription Drug Benefit

   Americas Health Insurance Plans logo. (PRNewsFoto)

WASHINGTON, DC USA
           Hails Unprecedented Collaboration Within the Industry

    WASHINGTON, June 14 /PRNewswire/ -- Medicare Part D beneficiaries are
experiencing savings and better benefits thanks to robust competition among
health insurance plans, Karen Ignagni, President and CEO of America's
Health Insurance Plans (AHIP), said today.
    (Logo: http://www.newscom.com/cgi-bin/prnh/20040830/AHIPLOGO )
    Testifying before the House Ways and Means Committee, Ignagni also said
that health insurance plans have collaborated with other key stakeholders
to strengthen the Part D program through initiatives to streamline and
standardize processes for the physicians and pharmacists who serve Part D
beneficiaries.
    "Less than six months into the most far-reaching expansion and reform
in Medicare's history, this new program is exceeding all expectations.
Seniors are saving and satisfied. Implementation challenges are being
resolved systematically," Ignagni said. "Because of all these efforts, the
new Medicare prescription drug benefit is well on its way to setting a new
standard for public-private partnerships."
    Ignagni noted that the Department of Health and Human Services (HHS)
has reported that beneficiaries are saving an average of $1,100 on their
annual prescription drug costs. In addition, HHS data show that competition
among health insurance plans and plans' cost-containment strategies have
resulted in premiums that are 38 percent lower than expected and will help
save taxpayers $30 billion over then next five years, Ignagni said.
    Highlighting the ongoing collaboration among health insurance plans,
physicians, pharmacists, beneficiary advocates and other stakeholders,
Ignagni testified that during the first stage of implementation in 2006,
AHIP members have:
    * Pledged to work with pharmacy benefit managers (PBMs) to ensure that
      payment for clean claims is transmitted via mail or electronic funds
      transfer at least twice per month and no later than 30 days after the
      claims are submitted by the pharmacy; and

    * Joined with the National Association of Chain Drug Stores (NACDS) and
      the National Community Pharmacists Association (NCPA) in announcing a
      joint agreement on standardized electronic messaging that promotes the
      consistent use of key terms by Part D plans to assist pharmacists in
      better serving beneficiaries; and

    * Worked with the American Medical Association and other physician
      associations to develop a standard form to simplify the process by which
      physicians can request prior authorization and coverage of non-formulary
      drugs under the Part D program; and

    * Supported formulary practices that promote continuity of care by
      ensuring Medicare beneficiaries will not be required to change their
      Part D formulary drugs or pay increased copays or coinsurance throughout
      a contract year; and

    * Achieved an 80 percent reduction in the average call center speed-to-
      answer time for beneficiaries since the program began in January; and

    * Achieved a 90 percent reduction in the average call center speed-to-
      answer time for pharmacy call centers since the program began in
      January.
    Looking forward, Ignagni testified that the industry currently is
working on a series of initiatives to improve the presentation of
information about beneficiary choices. Furthermore, health insurance plans
joined with CMS, the NACDS, the NCPA, the American Pharmacists Association,
employer associations and consumers groups to launch a Pharmacy Quality
Initiative that focuses on measuring and improving health care quality at
the pharmacy level.
    Click here to view full testimony:
http://www.ahip.org/content/fileviewer.aspx?docid=16707&linkid=143510

        America's Health Insurance Plans -- Providing Health Benefits
                      to More Than 200 Million Americans


SOURCE America's Health Insurance Plans




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Related links:
  • http://www.ahip.org
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    CONTACT:
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