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APhA Policy Manual

REIMBURSEMENT AND COMPENSATION

Browse policies organized by category. Select a category to view the related policy statements.

6 categories • 47 policies

Federal Programs

11 Policies
Critical Access Pharmacy Model

  1. APhA encourages the creation by Congress of a Critical Access Pharmacy designation for the Medicare program to ensure financial viability and high-quality care to beneficiaries in low access areas.
  2. APhA supports the implementation of a Critical Access Pharmacy designation by the Centers of Medicare and Medicaid Services (CMS) that incorporates both financial incentives and quality measures that improve business sustainability while maintaining quality of care.
  3. APhA supports the expansion of state and federal scholarships and student loan repayment programs to include pharmacists and technicians employed by Critical Access Pharmacies.

Medicare and Patient Care Service

  1. APhA believes that Health care, including the essential component of patient care services, should be made available to as many people as possible in our society through the most economical system compatible with an acceptable standard of quality.
  2. APhA should support the Part B mechanism which is the voluntary supplementary medical insurance program financed equally by beneficiaries and the government.
  3. APhA should oppose laws, regulations, and policies that would restrict the Medicare drug benefit to specific, chronic diseases.
  4. APhA should support the inclusion of patient care services under Medicare or any other federal financing mechanism, providing the program is designed to help persons who need it most and is administratively efficient and economical.

Pharmacists as Providers Under the Social Security Act

APhA supports changes to the Social Security Act to allow pharmacists to be recognized and paid as providers of patient care services.

Pharmacist’s Role in Health Care Reform

  1. APhA affirms that pharmacists are the medication experts whose accessibility uniquely positions them to increase access to and improve quality of health care while decreasing overall costs.
  2. APhA asserts that pharmacists must be recognized as the essential and accountable patient care provider on the health care team responsible for optimizing outcomes through medication therapy management (MTM).
  3. APhA asserts the following: (a) Medication Therapy Management Services: Definition and Program Criteria is the standard definition of MTM that must be recognized by all stakeholders. (b) Medication Therapy Management in Pharmacy Practice: Core Elements of an MTM Service Model, as adopted by the profession of pharmacy, shall serve as the foundational MTM service model.
  4. APhA asserts that pharmacists must be included as essential patient care provider and compensated as such in every health care model, including but not limited to, the medical home and accountable care organizations.
  5. APhA actively promotes the outcomes-based studies, pilot programs, demonstration projects, and other activities that document and reconfirm pharmacists’ impact on patient health and well-being, process of care delivery, and overall health care costs.

Government-Financed Reimbursement

  1. APhA supports only those government-operated or -financed, third-party prescription programs which ensures that participating pharmacists receive individualized, equitable compensation for professional services and reimbursement for products provided under the program.
  2. APhA regards equitable compensation under any government-operated or -financed, third party prescription programs as requiring payments equivalent to a participating pharmacist’s prevailing charges to the self-paying public for comparable services and products, plus additional, documented, direct and indirect costs which are generated by participation in the program.
  3. APhA supports those government-operated or -financed, third-party prescription programs which base compensation for professional services on professional fees and reimbursement for products provided on actual cost, with the provision of a specific exception to this policy in those instances when equity in professional compensation cannot otherwise be attained.

Inclusion of Pharmacist-Provided Patient Care Services in Health Programs

APhA supports the inclusion of pharmacist-provided patient care services in health care programs that are developed and/or funded by governments and private agencies and organizations.

Medicare, Medicaid, and Other Third-Party Payment Programs

  1. APhA advocates a professional fee system of reimbursement in Medicare and Medicaid and other third-party payment programs which would recognize variations in services provided and costs incurred by individual pharmacies.
  2. APhA supports maintaining close liaison with proponents of national health insurance programs to ensure that pharmacy will have an opportunity to make its views known in the development of such proposals.

Medicare: Reimbursement Procedures

APhA should educate pharmacists on aspects of reimbursement procedures and concepts associated with Medicare.

Tablet Splitting

APhA opposes mandatory tablet splitting.

National Health Insurance

2 Policies
National Health Insurance: Pharmaceutical Service Benefit

  1. A National Health Insurance pharmaceutical service benefit must include acceptable methods for ensuring equitable reimbursement to pharmacists for products and services which are to be provided under the program.
  2. Reimbursement to pharmacists for dispensed medication and devices under an NHI plan should be based on professional fees for professional services, plus reimbursement for the actual cost of any drug product or device provided.
  3. An NHI, pharmaceutical service benefit must optimize administrative efficiency and minimize administrative costs.

New Payment Systems

4 Policies
APhA’s Role in the Development and Support of New Payment Systems

  1. APhA should continue its work with pharmacy benefits’ managers and other private and public payers to develop innovative pharmacy benefit designs and compensation strategies for pharmacists’ services.
  2. APhA will endorse benefit design concepts that recognize and compensate pharmacists for their cognitive services to maximize therapeutic outcomes.

Integrated Risk/Capitation Payment Systems

  1. APhA should provide pharmacists with tools to evaluate compensation for their pharmaceutical care services through mechanisms based on concepts other than fee-for-service.
  2. APhA must facilitate both economic and clinical research on cost-to-outcomes benefits of pharmaceutical care services under integrated risk/capitated health care systems.
  3. APhA affirms the principle that any pharmacist or pharmacy that adheres to a programs quality standards and agrees to accept its compensation plan shall be able to participate in an integrated risk/capitated system or network.

Product and Payment Systems

  1. APhA shall work with public and private sectors in developing timely educational processes which assist pharmacists to implement patient care, understand new payment systems, and apply emerging therapeutic advances to achieve desired patient outcomes.
  2. APhA supports payment systems that distinguish between compensation for the provision of pharmaceutical care and reimbursement for product distribution.
  3. APhA shall participate in the identification, development, and implementation of models for procurement and handling of therapeutic and diagnostic pharmaceutical products and devices which assure the continuous provision of pharmaceutical care by pharmacists.

Payment System Reform

  1. APhA must advocate reform of pharmacy payment systems to enhance the delivery of comprehensive medication-use management services.
  2. APhA must assume a leadership role, in cooperation with other pharmacy organizations, patients, other providers of health services, and third-party payers, in developing a payment system reform plan.
  3. APhA should encourage universal acceptance of all components of pharmaceutical care and their integration into pharmacy practice to support payment for services.

Professional Fees

3 Policies
Compensation for Cognitive Services

  1. APhA recognizes that pharmacists provide patients cognitive services that may or may not be related to the dispensing or sale of a product.
  2. APhA demands payment parity for pharmacists providing patient care services that may or may not be related to the dispensing or sale of a product.

Periodic Adjustments of Professional Fees in Federal Programs

It is essential that laws, regulations, and policies governing pharmacist professional fees in federally-supported, health care programs require review and equitable adjustments on a regularized, periodic basis.

Billing and Documentation of Medication Therapy Management (MTM) Services

  1. APhA encourages the development and use of a system for billing of medication therapy management (MTM) services that: (a) includes a standardized data set for transmission of billing claims, (b) utilizes a standardized process that is consistent with claim billing by other health care providers, and (c) utilizes a billing platform that is accepted by the Centers for Medicare and Medicaid Services (CMS) and is compliant with the Health Insurance Portability and Accountability Act (HIPAA).
  2. APhA supports the pharmacist’s or pharmacy’s choice of a documentation system that allows for transmission of any MTM billing claim and interfaces with the billing platform used by the insurer or payer.
  3. APhA encourages pharmacists to use the American Medical Association (AMA) Current Procedural Terminology (CPT) codes for billing of MTM services.
  4. APhA supports efforts to further develop CPT codes for billing of pharmacists’ services, through the work of the Pharmacist Services Technical Advisory Coalition (PSTAC) and Pharmacy e-HIT Collaborative.

Third Party and Prepaid Programs

3 Policies
Exemption from the Employee Retirement Income Security Act (ERISA)

APhA seeks introduction of laws, regulations, and policies exempting state, third-party, and prescription programs from preemption by ERISA.

Third-party Reimbursement Legislation

APhA supports enactment of laws, regulations, and policies requiring that third-party program reimbursement to pharmacists be at least equal to the pharmacists prevailing charges to the self-paying public for comparable services and products, plus additional documented direct and indirect costs, which are generated by participating in the program.

The Scientific Implications of Health Care Reform

  1. APhA advocates that the public and private sectors maintain or increase their level of commitment to ensure adequate resources for both basic and applied research within a reformed health care system.
  2. APhA encourages the public and private research communities to preferentially expend resources for the discovery and development of new drugs and technologies that provide substantive, innovative therapeutic advances.
  3. APhA advocates an increased emphasis on outcomes research in all areas of health services, including drug and disease-specific research encompassing clinical, economic, and humanistic dimensions (e.g., quality of life, patient satisfaction, ethics) and advocates for action related to conclusions for such research.
  4. APhA encourages interdisciplinary collaboration in research efforts within and between the public and private research communities.

Ensuring Access to Pharmacists' Services

  1. Pharmacists are health care providers who must be recognized and compensated by payers for their professional services under medical benefit payment structures.
  2. APhA supports integration pharmacists' provision of health care services into existing standardized processes under the medical benefit.
  3. APhA affirms that pharmacists’ must be compensated for their services consistent with the processes of, and in parity with, other health care providers.
  4. APhA advocates for the development and implementation of a standardized credentialing process for compensation of pharmacist services.
  5. APhA advocates for pharmacists’ access and contribution to clinical and claims data to support treatment, payment, and health care operations.
  6. APhA supports the integration of pharmacists’ service level and outcome data with other health care provider and claims data.
  7. APhA advocates for the in-network inclusion of pharmacists under medical benefits to increase access to health care services.
  8. APhA opposes policies or practices that prevent or undermine billing for pharmacist-provided services under the medical benefit by any health plan, payer, pharmacy benefit manager (PBM), or other entity.

Pharmacist's Role in Immunizations

  1. APhA encourages pharmacy personnel to take an active role in achieving the goals of the Healthy People program regarding immunizations through (a) advocacy; (b) contracting with other health care professionals; or (c) administering vaccines to patients facing barriers to health.
  2. APhA encourages the availability of all vaccines to all pharmacies in order to meet public health needs.
  3. APhA supports the compensation of pharmacy personnel for the administration of immunizations and the reimbursement for vaccine distribution.
  4. APhA should facilitate the development of programs that educate pharmacy personnel about their role in immunizations in public health.

Primary Care in Pharmacy

  1. APhA supports the integration of pharmacists as providers of primary care services to address acute health issues, improve management of chronic disease, coordinate care, and provide preventive care.
  2. APhA advocates for government and private entities to add community pharmacy as a recognized place of service for the delivery of pharmacist-led primary care services
  3. APhA calls for payment parity for primary care services provided by a pharmacist through the patients’ medical benefit.
  4. APhA supports the application of the standard of care regulatory model to guide pharmacists’ delivery of primary care services.
  5. APhA supports increasing public awareness of pharmacist-led primary care services.

Shared Clinical Decision Making for Immunizations

  1. APhA supports pharmacists being recognized as independent health care providers with regard to recommending and administering vaccines based on shared clinical decision making (SCDM).
  2. APhA advocates for compensation for shared clinical decision making (SCDM) consultations in addition to vaccine administration fees to increase patient access to SCDM vaccines.

Community-Based Pharmacists as Providers of Care

  1. APhA advocates for the identification of medical conditions that may be safely and effectively treated by community-based pharmacists.
  2. APhA encourages the training and education of pharmacists and student pharmacists regarding identification, treatment, monitoring, documentation, follow-up, and referral for medical conditions treated by community-based pharmacists
  3. APhA advocates for laws, regulations, and policies that allow pharmacists to identify and manage medical conditions treated by community-based pharmacists.
  4. APhA advocates for appropriate remuneration for the assessment and treatment of medical conditions treated by community-based pharmacists from government and private payers to ensure sustainability and access for patients.
  5. APhA supports research to examine the outcomes of services that focus on medical conditions treated by community-based pharmacists.

Contemporary Pharmacy Practice

  1. APhA asserts that pharmacists should have the authority and support to practice to the full extent of their education, training, and experience in delivering patient care.
  2. APhA opposes burdensome legal and regulatory requirements beyond continuing professional development for the provision of patient care services.
  3. APhA supports continuing efforts toward establishing a consistent and accurate perception of the contemporary role and practice of pharmacists by the general public, patients, and all persons and institutions engaged in health care policy, administration, payment, and delivery.
  4. APhA supports continued collaboration with stakeholders to facilitate adoption of standardized practice acts, appropriate related laws, regulations, and policies that reflect contemporary pharmacy practice.
  5. APhA supports the establishment of multistate pharmacist licensure agreements to address the evolving needs of the pharmacy profession and pharmacist-provided patient care.
  6. APhA urges the continued development of consensus documents, in collaboration with medical associations and other stakeholders, that recognize and support pharmacists’ roles in patient care as health care providers.
  7. APhA urges universal recognition of pharmacists as health care providers and compensation based on the level of patient care provided using standardized and future health care payment models.

Independent Practice of Pharmacists

  1. APhA recommends that health plans and payers contract with and appropriately compensate individual pharmacist providers for the level of care rendered without requiring the pharmacist to be associated with a pharmacy.
  2. APhA supports adoption of laws, regulations, and policies pertaining to the independent practice of pharmacists when those laws, regulations, and policies and rules are consistent with APhA policy.
  3. APhA, recognizing the positive impact that pharmacists can have in meeting unmet needs and managing medical conditions, supports the adoption of laws, regulations, and policies and the creation of payment mechanisms for appropriately trained pharmacists to autonomously provide patient care services, including prescribing, as part of the health care team.

Pharmacist Workplace Environment and Patient Safety

  1. APhA supports staffing models that promote safe provision of patient care services and access to medications.
  2. APhA encourages the adoption of patient centered quality and performance measures that align with safe delivery of patient care services and opposes the setting and use of operational quotas or time-oriented metrics that negatively impact patient care and safety.
  3. APhA denounces any policies or practices of third-party administrators, processors, and payers that contribute to a workplace environment that negatively impacts patient safety. APhA calls upon public and private policy makers to establish provider payment laws, regulations, and policies that support the safe provision of medications and delivery of effective patient care.
  4. APhA urges pharmacy personnel to establish collaborative mechanisms that engage the pharmacist in charge of each practice, pharmacists, pharmacy technicians, and pharmacy staff in addressing workplace issues that may have an impact on patient safety.
  5. APhA urges employers to collaborate with the pharmacy staff to regularly and systematically examine and resolve workplace issues that may have a negative impact on patient safety.
  6. APhA opposes retaliation against pharmacy personnel for reporting workplace issues that may negatively impact patient safety.

Providing Affordable and Comprehensive Pharmacy Services to the Underserved

  1. APhA supports the expansion and increased sources of funding for pharmacies and pharmacist-provided care services that serve the needs of underserved populations to provide better health outcomes and lower healthcare costs.
  2. APhA supports charitable pharmacies and pharmacy services that ensure the quality, safety, drug storage, and integrity of the drug product and supply chain, in accordance with applicable laws, regulations, and policies.

Revisions to the Medication Classification System

  1. APhA supports the Food and Drug Administration's (FDA) efforts to revise the drug and medical device classification paradigms for prescription and nonprescription medications and medical devices to allow greater access to certain medications and medical devices under conditions of safe use while maintaining patients' relationships with their pharmacists and other health care providers.
  2. APhA supports the implementation or modification of state laws, regulations, and policies to facilitate pharmacists’ implementation and provision of services related to a revised drug and medical device classification system.
  3. APhA supports a patient care delivery model built on coordination and communication between pharmacists and other health care team members in the evaluation and management of care delivery.
  4. APhA affirms that pharmacists are qualified to provide clinical interventions on medications and medical devices under FDA’s approved conditions of safe use.
  5. APhA urges manufacturers, FDA, and other stakeholders to include pharmacists’ input in the development and adoption of technology and standardized processes for services related to medications and medical devices under FDA’s defined conditions of safe use.
  6. APhA supports the utilization of best practices, treatment algorithms, and clinical judgment of pharmacists and other health care providers to guide the evaluation and management of care delivery related to medications and medical devices under FDA’s approved conditions of safe use.
  7. APhA encourages the inclusion of medications, medical devices, and their associated services provided under FDA’s defined conditions of safe use within health benefit coverage.
  8. APhA supports compensation of pharmacists and other health care professionals for the provision of services related to FDA’s defined conditions of safe use programs.

Uncompensated Care Mandates in Pharmacy

APhA calls for commensurate compensation for the provision of compulsory or mandated pharmacy services that include all products, supplies, labor, expertise, and administrative fees based on transparent economic analyses of existing and future services.

Access and Reimbursement for Diabetes Education, Support, and Prevention Services

  1. APhA supports the expansion of patient access to diabetes education, support, and prevention, including but not limited to the National Diabetes Prevention Program or DSMES.
  2. APhA calls upon public and private payers to expand reimbursement for pharmacist-based services as providers of diabetes education, support, and prevention regardless of practice setting.
  3. APhA advocates for campaigns focused on increased community wellness awareness and health benefits for diabetes education, support, and prevention.

Accountability of Pharmacists

  1. APhA affirms pharmacists’ professional accountability within their role in all practice settings.
  2. APhA advocates that pharmacists be granted and accept authority, autonomy, and accountability for patient-centric actions to improve health and medication outcomes, in coordination with other health professionals, as appropriate.
  3. APhA reaffirms 2017 Pharmacists’ Role Within Value-based Payment Models and supports continued expansion of interprofessional patient care models that leverage pharmacists as accountable members of the health care team.
  4. APhA advocates for sustainable payment and attribution models to support pharmacists as accountable patient care providers.
  5. APhA supports continued expansion of resources and health information infrastructures that empower pharmacists as accountable health care providers.
  6. APhA supports the enhancement of comprehensive and affordable professional liability insurance coverage that aligns with evolving pharmacist accountability and responsibility.

Coordination of the Pharmacy and Medical Benefit

APhA supports coordination of patients’ comprehensive pharmacy and medical benefits that allows for provision of and compensation for pharmacists’ patient care services; aligns incentives to optimize patient outcomes; streamlines administrative processes; reduces overall health care costs and preserves patients’ right to choose providers under their pharmacy and medical benefits.

Referral System for the Pharmacy Profession

  1. APhA supports referrals of patients to pharmacists, among pharmacists, or between pharmacists and other health care providers to promote optimal patient outcomes.
  2. APhA supports referrals to and by pharmacists that ensure timely patient access to quality services and promote patient freedom of choice.
  3. APhA advocates for pharmacists’ engagement in referral systems that are aligned with those of other health care providers and facilitate collaboration and information sharing to ensure continuity of care.
  4. APhA supports attribution and equitable payment to pharmacists providing patient care services as a result of a referral.
  5. APhA promotes the pharmacist’s professional responsibility to uphold ethical and legal standards of care in referral practices.
  6. APhA reaffirms its support of development, adoption, and use of policies and procedures by pharmacists to manage potential conflicts of interest in practice, including in referral systems.

Direct and Indirect Remuneration Fees

APhA opposes retroactive direct and indirect remuneration (DIR) fees and supports initiatives to prohibit such fees on pharmacies.

Use of Genomic Data Within Pharmacy Practice

  1. APhA emphasizes genomics as an essential aspect of pharmacy practice.
  2. APhA recognizes pharmacists as the health care professional best suited to provide medication-related consults and services based on a patient’s genomic information. All pharmacists involved in the care of the patient should have access to relevant genomic information.
  3. APhA supports processes to protect patient data confidentiality and opposes unethical utilization of genomic data.
  4. APhA demands payers include pharmacists as eligible providers for covered genomic interpretation and related services to support sustainable models that optimize patient care and outcomes.
  5. APhA urges pharmacy management system vendors to include functionality that uses established and adopted electronic health record standards for the exchange, storage, utilization, and documentation of clinically actionable genetic variations and actions taken by the pharmacist in the provision of patient care.
  6. APhA recommends pharmacists and pharmaceutical scientists lead the collaborative development of evidence-based practice guidelines for pharmacogenomics and related services.
  7. APhA recommends the inclusion of pharmacists and pharmaceutical scientists in the collaborative development of pharmacogenomics clinical support tools and resources.
  8. APhA encourages pharmacists to use their professional judgment and published guidelines and resources when providing access to testing or utilizing direct-to-consumer genomic test results in their patient care services.
  9. APhA urges schools and colleges of pharmacy to include clinical application of genomics as a required element of the Doctor of Pharmacy curriculum.
  10. APhA encourages the creation of continuing professional development and post-graduate education and training programs for pharmacists in genomics and its clinical application to meet varying practice needs.
  11. APhA encourages the funding of pharmacist-led research examining the cost effectiveness of care models that utilize pharmacists providing genomic services.

Pharmacists' Role Within Value-based Payment Models

  1. APhA supports value-based payment models that include pharmacists as essential health care team members and that promote coordinated care, improved health outcomes, and lower total costs of health care.
  2. APhA encourages the development and implementation of meaningful, consistent, process-based and outcomes-based quality measures that allow attribution of pharmacist impact within value-based payment models.
  3. APhA advocates for mechanisms that recognize and compensate pharmacists for their contributions toward meeting goals of quality and total costs of care in value-based payment models, separate and distinct from the full product and dispensing cost reimbursement.
  4. APhA advocates that pharmacists must have real-time access to and exchange of electronic health record data within value-based payment models in order to achieve optimal health and medication-related outcomes.
  5. APhA supports education, training, and resources that help pharmacists transform and integrate their practices with value-based payment models and programs.

Pharmacy Performance Networks

  1. APhA supports performance networks that improve patient care and health outcomes, reduce costs, use pharmacists as an integral part of the health care team, and include evidence-based quality measures.
  2. APhA urges collaboration between pharmacists and payers to develop distinct, transparent, fair, and equitable payment strategies for achieving performance measures associated with providing pharmacists’ patient care services that are separate from the reimbursement methods used for product fulfillment.
  3. APhA advocates for prospective notification of evidence-based quality measures that will be used by a performance network to assess provider and practice performance. Furthermore, updates on provider and practice performance against these measures should be provided in a timely and regular manner.
  4. APhA supports pharmacists’ professional autonomy to determine processes that improve performance on evidence-based quality measures.

Audits of Health Care Practices

  1. APhA recognizes that audits of health care practices, when used appropriately, may improve patient care and deter fraud, waste, and abuse.
  2. APhA advocates for the use of standardized and efficient audit procedures with transparent criteria clearly communicated by the payor and readily accessible to providers in advance.
  3. APhA advocates that audit processes should result in minimal disruption to practice workflow, minimal financial burden, and no impact on patient care.
  4. APhA urges timely notification and scheduling of claims audits to minimize disruption of patient care delivery.
  5. APhA supports the inclusion of education as a component of the audit process to improve documentation of services, meet payor requirements, and enhance the quality-of-care delivery.
  6. APhA opposes incentive-based auditor compensation and the use of statistical methodologies, such as sample extrapolation, for determining the recoupment of funds from health care providers or health care organizations.
  7. APhA advocates that audit reports include complete information listing audit discrepancies and appropriate guidelines for documenting and appealing these findings.
  8. APhA advocates that pharmacy audits be performed in a professional manner by a pharmacist or certified pharmacy technician.

Catastrophic Illness: Coverage for Pharmacist Services Included

  1. APhA supports comprehensive, catastrophic illness insurance coverage that recognizes the essential need for pharmaceutical products and pharmacist services in all patient care environments, including the home.
  2. APhA encourages inclusion of pharmacist services and the most efficient and readily accessible system of drug delivery in any insurance coverage for catastrophic illness that may be enacted.

Pharmacists and Home Health Care

  1. APhA supports establishment of pharmacist consulting services for home care.
  2. Medicaid and other third-party programs should recognize the consulting role of the pharmacist in reducing the misuse of drugs and maximizing their therapeutic effectiveness through fair and equitable reimbursement for consulting functions which is not tied to the provision of medications.
  3. Medicaid and other third-party programs also should reimburse pharmacists for innovative packaging and services that will maximize adherence, increase the opportunity for drug utilization review, and better meet the informational needs of the patient and the care giver.

Reimbursement for Unapproved (Off-Label) Uses of FDA-Approved Drug Products

APhA supports coverage of FDA-approved drugs and pharmacist services connected with the delivery of such drugs by government and other third-party payers when used rationally for indications other than those specified in the product labeling.

Pharmacists’ Services

  1. APhA supports development of pharmacy payment systems that include reimbursement of the cost of any medication or device provided; the cost of preparing the medication or device; the costs of administrative services; return on capital investment; and payment for both the dispensing-related and non-dispensing-pharmacy services.
  2. APhA believes that appropriate incentives for the pharmacist providing care should be part of any payment system.

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