Reform of Part D Direct and Indirect Remuneration Fees

The Honorable Joe Manchin, United States Senate

Dear Senator Manchin:

As Executive Director of the West Virginia Pharmacists Association, an association representing pharmacists throughout your state who provide vital pharmacy services and products to constituent patients, I respectfully request you support a letter crafted by Senators Shelley Moore Capito (R-WV) and Jon Tester (D-VT) to the Secretary of Health and Human Services urging the much-needed reform of Part D direct and indirect remuneration (DIR) fees before the deadline January 30.

Recently, CMS published the proposed rule, “Modernizing Part D and Medicare Advantage to Lower Drug Prices and Reduce Out-of-Pocket Expenses” where CMS suggests changing the application of pharmacy price concessions — also known as DIR fees — in the Medicare Part D program.

Reforming DIR fees will: (1) lead to lower co-pays for beneficiaries; (2) create needed value-based infrastructure to drive pharmacy quality and performance metrics in an efficient and impactful way; and (3) result in better financial line of sight and greater stability for small businesses, local, regional and national pharmacies across the country.

Senators Capito and Tester, who led a 2018 DIR reform letter supported by 19 other U.S. Senators to the Secretary of Health and Human Services, have crafted a follow-up letter to again express support for this policy to be finalized with the rule. As a supporter of the 2018 DIR reform letter, I urge you to review and consider supporting the 2019 Capito-Tester sign-on letter by accessing the below link:

To support the letter before the January 30 deadline, please contact Dana Richter at in Senator Capito’s office or Laura Peterson at in Senator Tester’s office. Thank you for considering this Association’s request.

Richard Stevens, Executive Director