CMS Finalizes New Standards
For E-Prescribing in Drug Benefit Program


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Volume 13 Number 64
ISSN 1091-4021
Thursday, April 3, 2008

News: Part D Drug Benefit

The Centers for Medicare & Medicaid Services has finalized four new standards for e-prescribing in the Medicare Part D drug benefit, saying the effort could improve safety, cost, and efficiency in the program.

The final rule is scheduled to appear in the April 7 Federal Register; however, CMS released details about the new standards April 2.

One of the four new standards establishes protocols for prescribers to communicate with Part D plans about formularies, allowing doctors to know at the point of writing a prescription what drugs are covered by their patients' Medicare drug plans.

The rule also includes a standard for allowing physicians, dispensers, and Part D plans to communicate among one another about what prescription drugs patients are taking. That level of communication about beneficiaries' medication histories can help avoid negative drug interactions and other adverse drug events, CMS said.

The standards also include provisions for dispensers to notify doctors when patients pick up or fail to pick up prescriptions and when prescriptions have been partially filled.

"These notifications can help health care providers monitor patients with chronic conditions, such as diabetes or hypertension, by providing an indicator as to whether they are taking their medicines," CMS said in a news release.

Additionally, the rule would require physicians, dispensers, and Part D plans to use National Provider Identifier numbers identify providers.

Widespread Adoption

Health and Human Services Secretary Michael O. Leavitt said that Part D standards for e-prescribing were a step toward widespread adoption of e-prescribing.

Likewise, acting CMS Administrator Kerry N. Weems said the final standards for e-prescribing moved health care "closer to achieving interoperable health information technology." Weems also touted e-prescribing as a vehicle for improving quality and efficiency in the delivery of care to beneficiaries.

"Converting from a paper-based system to e-prescribing promises improvements that will help prescribers, pharmacies, and all who are eligible for Medicare's prescription drug benefit," Weems said. "Most importantly, e-prescribing can help reduce the number of adverse drug events, which have been estimated at 530,000 a year for Medicare beneficiaries."

Pharmaceutical Care Management Association President and Chief Executive Officer Mark Merritt on April 2 applauded the rule, saying it was "a major step in the drive for health IT reform." PCMA represents pharmacy benefit managers.

Physicians, pharmacies, and other dispensers are not required to adopt Part D e-prescribing standards unless they transmit Part D prescription data electronically. However, Part D plans are required by Medicare law to support e-prescribing.

A bill introduced in late 2007 in the Senate and House, the proposed Medicare Electronic Medication and Safety Protection (E-MEDS) Act of 2007 (S. 2408 and H.R. 4296) would give physicians grants to offset the initial costs of e-prescribing technology and would provide payment incentives to doctors for utilizing e-prescribing for Medicare beneficiaries.

Additional information about e-prescribing is available.



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