CEO Message May 23, 2008
Author: Lynn Rolston
Dear Member,
Medi-Cal Budget Cuts Update
· Legal Action - This week, CPhA and our partners were very disappointed to learn that the Attorney General's Office petitioned to have both pending lawsuits moved to federal court. Our legal team has told us that this will delay our action. However, this does not mean that we won't prevail in stopping the cuts; it just means that it could be in the eleventh hour before the scheduled implementation of July 1, 2008.
· Legislative Update - Now that the various interests such as education, prisons and parks have been somewhat taken care of with the proposed May Revise, health care is now, once again, a significant focus area. Talks have resumed around the Capitol regarding health care reform and the LAO, again, published an alternative budget, which would eliminate most of the Medi-Cal cuts. We know that a very large number of legislators are against these cuts and, if at all possible, will act to help.
· PR Update - As we note below, there were a number of great PR articles published during the week focusing on the Medi-Cal cuts. And, at this point, the petitions are still pouring in with more than 15,000 signatures collected from patients and others who want to stop these cuts. This is having a tremendous impact at the Capitol and we urge you to continue with this effort by visiting www.calaccessrx.org and downloading petitions.
· Pharmacy Defense Fund Update - While we have continued to receive donations over the last week, our bills are mounting and we need to collect sufficient funds to implement our entire plan. Please help if you possibly can by making a donation at www.cpha.com.
Health Management Associates Report
On Thursday, a comprehensive analysis of the impact of the budget cuts was released and distributed to the media and the Legislature. The report was accompanied by a press release from the Patients for Access to Medicines (PAM) coalition that makes a number of powerful points regarding the devastation these cuts will cause. Please view this report by visiting www.calaccessrx.org. Feel free to use this information with legislators, the press, public and anyone who needs to be fully informed about this issue.
Urgent Need - Letters to Legislators
We need your help today and in the coming weeks to bombard the Capitol with letters from you, your friends, relatives and your patients regarding the dire need to stop these ten percent cuts. CPhA hosts the capability of easily sending out these letters. You can access the system by clicking here. If you have not done this previously, there is a simple registration process that you will need to go through in order for the system to identify your local legislators. WE NEED YOUR HELP.
NCPA Annual Legislative Conference in Washington, D.C.
NCPA held its annual legislative conference earlier this week in Washington, D.C. Fifteen California pharmacists attended including President Paul Lofholm, Past President John Tilley, Past President Dave Wilcox and APO Board Member Jerry Shapiro to name a few. Kathy Lynch also attended and held meetings with a number of key contacts around the country. During the conference, the group attended legislative visits on Capitol Hill. It was an outstanding conference again this year and we know that this organized effort to tell legislators of the value of community pharmacy will surely pay off in greater support going forward.
Reminder
The California Society of Health-System Pharmacists is holding its Legislative Day on Thursday, June 12, 2008 from 10 a.m. to 4 p.m. at the Sacramento Sheraton Grand Hotel. Following an informative program in the morning, registrants will visit legislators in the afternoon. Every single contact with legislators greatly helps the profession of pharmacy. We urge you to attend this event if possible and take advantage of this great opportunity. To register, please visit www.cshp.org.
Medi-Cal NPI Reminders & Tips
EDS informed me that approximately 49% of pharmacies have implemented the inclusion of the NPI on their claim submittals. Up until now, the use of the NPI has been optional; however, as of today it is required that you use the NPI on your submitted claims or you will not receive reimbursement. Here are some hints from EDS that will help facilitate your transition to the NPI:
- Verify that the NPI is registered with Medi-Cal and CHDP (if applicable).
- Ensure a valid 10-digit NPI is entered in the billing provider field on the paper claim form or electronic claim submission.
- Verify that the ID qualifier is not included in the NPI.
- Verify that the NPI belongs to the correct provider/store. (A rendering provider cannot use the group's NPI and vice versa. Providers who render services in a facility cannot use the facility's NPI, and vice versa. An individual provider cannot use another individual provider's NPI).
- Verify that a valid NPI is entered in the referring [prescriber] provider field. If an NPI for the referring provider is not available, providers should enter the 9-digit Medi-Cal provider number or license number.
- If there is a new CMC submitter, change of ownership and/or new locations/stores have been acquired, be sure that you have submitted a new Medi-Cal Telecommunications Provider and Biller Application/Agreement form (DHCS 6153) if they are submitting claims electronically in order to "link" the NPI to the CMC (Computer Media Claims) Submitter ID.
- Medi-Cal has seen a decrease in the use of the NPI-compliant proprietary forms. Use of the NPI-compliant 30-4 was at 60% the week of April 18th, however, for the week of May 9th use was down to 12%. Similarly, for the week of May 5th, use of the NPI-compliant 30-1 was at 75% but is now down to 57%. Please urge your members who participate in Medi-Cal to transition to the updated NPI-compliant proprietary Pharmacy Claim Form (30-1) and Compound Drug Pharmacy Claim Form (30-4) forms.
- Lastly, be sure to follow the instructions published regarding the NPI update made to the Medi-Cal POS NCPDP Pharmacy Transaction Specifications, Third Party Vendors (Dial-Up and Leased-Line) document. The article containing those details can be found on the Medi-Cal Web site at: http://files.medi-cal.ca.gov/pubsdoco/newsroom/newsroom_9245_1.asp
For additional assistance, providers may contact the Telephone Service Center (TSC) at 1-800-541-5555, option 16 and then option 18 for the NPI Helpdesk or visit the Medi-Cal Web site at www.medi-cal.ca.gov and access the NPI link on the "Featured" tab.
EDS Offers to Host eTAR Trainings for Pharmacy
Recently, EDS contacted CPhA to say that "all pharmacies who accept Medi-Cal should be activated to submit eTARs online." EDS has extended an offer to hold trainings for pharmacy relative to submitting, updating and inquiring on eTAR PAs. If you are interested in the eTAR training at your local, online, during Outlook, or elsewhere please contact Veronica Van Orman at 916/779-1400 ext. 311 or vvanorman@cpha.com. You may also contact Paige Talley at 916-779-1400 ext. 346 or at ptalley@cpha.com.
View and Vote for USC's Film to Fight the 10% Budget Cuts
A group of very creative USC student pharmacists including Bonnie Hui (winner of the 2008 Pharmacy Foundation of California (PFC) Film Festival) have produced a "short film" to oppose the State's 10% budget cuts. This film has been entered into the "Summer of Change '08" video contest, and with your help, these students may be able to get their film broadcast on television. To provide your support, all you have to do is visit www.summerofchange08.com and vote for video #145. You can also view Bonnie's winning video from the PFC Film Festival (as well as the other top two finalists) by visiting www.pharmacyfoundation.org.
Pharmacy Foundation of California Announces FREE online Medication Errors CE
National medication safety expert, Michael Cohen, provided this year's guest lecture at the 2008 Pharmacy Foundation of California Awards Breakfast. During his lecture, Dr. Cohen used real life case studies to illustrate the devastating impact of medication errors, and the medication safety practices that can be used to prevent them. The Pharmacy Foundation of California is pleased to provide individuals who were unable to attend this program with the opportunity to view Dr. Cohen's talk online and obtain 1 hour (0.1 CEU) of pharmacy CE credit. For more information, please visit www.pharmacyfoundation.org.
National Association of Boards of Pharmacy
NABP named 79 Internet drug outlets operating in conflict with patient safety and pharmacy practice standards. You can read the entire press release by visiting www.nabp.net/.
Recall -Solodyn
Medicis voluntarily recalled Solodyn after reporting that one bottle contained Azasan, an immuno-suppressive agent used in transplant patients to prevent kidney rejection and for the treatment of rheumatoid arthritis. For further information on this recall, please click here.
Dell Laptop Computer Discount
CPhA recently negotiated a group discount on Dell Laptop computers with the assistance of our Director of IT, Dan Elkins. CPhA members can receive up to 25% off the list price on the Dell Latitude, Optiplex, and Precision lines, as well as discounts on other electronics and accessories. There are no discounts on Vostro, Ink and Toner products. Click here to create your CPhA Dell Discount Account.
In the News:
Last week I mentioned the oped that I co-authored with Steven Anderson from NACDS and Bill Dombrowski from CRA. The piece ran on Thursday in Capitol Weekly. It is expected to run in other major dailies throughout the state in the coming weeks.
Pharmacy owner Andy Stout from Bakersfield also authored an opinion editorial regarding the Medi-Cal cuts. His piece ran in the Bakersfield Californian. Additionally, Sacramento pharmacist Frank Cable had his letter-to-the-editor printed in the Sacramento Bee regarding the Medi-Cal budget cuts. Thank you for helping us get the word out regarding the devastating impact these cuts will have on pharmacy and the patients we serve. It's great that we are getting pieces placed all over the state and I am confident that we can continue to keep the momentum going!
KPCC (NPR) in Los Angeles has aired a two-part series on the impact of the Medi-Cal budget cuts on hospitals. You can listen to the story by clicking here. You can also read articles pertaining to the Medi-Cal cuts in newspapers throughout California including the North County Times, the Press Enterprise and the Contra Costa Times among others. You can also visit our coalition partner web sites for more news on the Medi-Cal provider cuts including Patients for Access to Medicines web site at www.calaccessrx.org or the Alliance for Patient Care at www.allianceforpatientcare.org.
The Pharmacy Technician Certification Board announced that over 300,000 pharmacy technicians have officially been designated Certified Pharmacy Technicians (CPhT) through successfully completing the national Pharmacy Technician Certification Examination or transfer process since the program's inception in 1995. You can read the full news release here.
Question of the Week
Dear Lynn,
What is the difference between the CPh-PAC and the Pharmacy Defense Fund?
Sincerely,
Richard Kane
Woodland Hills, CA
Answer
Dear Rich,
That is a great question. The CPh-PAC is a separate entity from CPhA that raises funds from members in order to contribute to the political campaign of candidates for public office. Political Action Committees are very highly regulated and are governed by the Fair Political Practices Commission. The reason that PACs are so important is that it allows groups of individuals in organizations or companies to pool their resources and support candidates for various political races that may be knowledgeable about their industry or profession. The CPh-PAC raises over $100,000 every year and places those funds with elected officials running for office or candidates that understand pharmacy.
The Pharmacy Defense Fund, on the other hand, is an opportunity for us to pool monies to fund a specific action plan relative to an important issue we are facing. Currently, our fund is focused on raising money to implement our plan to fight the ten percent budget cuts to Medi-Cal. We have raised nearly $150,000 for this purpose and will need significantly more to fund legal and PR efforts to educate decision makers and the public. Collections for a defense fund are not regulated other than by the board and members of the organization involved. Clearly, both are extremely important to our overall effort. The PAC is more long term while the Defense Fund is immediate and issue related.
Thanks for the question.

Lynn Rolston
Chief Executive Officer
lrolston@cpha.com