Congress Weighs In As DIR Fees Threaten Supermarket Pharmacies

Promoting and Advancing Petroleum Marketing, Retail Grocery, and Convenience Stores in West Virginia

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OMEGA is a West Virginia-based organization dedicated to supporting and advancing the business interests of the state’s petroleum marketing, retail grocery, and convenience store industries.

As a network of over 225 locally owned businesses, OMEGA actively promotes cooperation, advocates for favorable legislation, and provides education and resources to its members. With over 50,000 employees, OMEGA members significantly contribute to the state’s economy, generating more than 10% of all state taxes and supporting local communities through scholarships, charitable donations, and civic involvement.

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OMEGA offers three types of membership: Convenience Store Members, Petroleum Marketer Members, and Grocer Members, all of which play a vital role in providing fuel, food, and essentials across West Virginia. As a liaison with state and national agencies, OMEGA works closely with organizations like NACS, PMAA, FMI, and the N.G.A. to advocate on behalf of its members.

We keep members informed through newsletters, legislative updates, an online resource hub, and educational seminars. Additional member benefits include access to the Encova Workers’ Compensation Discount Program and participation in our annual Trade Expo and fundraising efforts for children’s charities. OMEGA is here to support, advocate, and enhance the success of our industry members.

FMI united with a diverse coalition of pharmacy groups to continue urging the Trump Administration, while also lauding the recent, bipartisan emphasis by Congress on closing the loophole that inflates drug costs for patients and Medicare, and jeopardizes pharmacies.

By: Peter Matz, Director, Health & Food Policy, Food Marketing Institute <img src="https://www.fmi.org/images/default-source/blog-images/dirletters-graphic-june2019.tmb-large-350-.jpg?sfvrsn=6173576e_1" data-displaymode="Thumbnail" alt="DIRLetters-Graphic-June2019" title="DIRLetters-Graphic-June2019" style="float: right; margin-bottom: 10px; margin-left: 10px;" />Health and well-being, including pharmacy-specific programs, is of the utmost importance to the food retail industry. Supermarket pharmacies provide a positive competitive market force in delivering affordable and accessible prescription medicines to consumers and patients. Over the years, however, FMI members have been frustrated by DIR fees, which are used by pharmaceutical supply chain intermediaries to recoup funds from pharmacies retroactively, often weeks or even months after prescriptions were filled. According to the federal government, pharmacy DIR fees have grown by more than 45,000 percent between 2010 and 2017!  And, in an industry that operates on razor thin profit margins, supermarket pharmacies have virtually no ability to absorb these unexpected costs. Unfortunately, the administration <a href="https://www.fmi.org/newsroom/news-archive/view/2019/05/17/fmi-expresses-disappointment-over-administration-s-failure-to-address-pharmacy-dir-fees-in-final-drug-pricing-rule">failed to address</a> the skyrocketing DIR fees in a recent Medicare rulemaking, missing an opportunity to both lower beneficiary out-of-pocket costs and stabilize the operating environment for retail pharmacies. Therefore, FMI united with a diverse coalition of pharmacy groups to continue urging the Trump administration, while also lauding the recent, bipartisan emphasis by Congress on closing the loophole that inflates drug costs for patients and Medicare, and jeopardizes pharmacies. Over the past three weeks, <a href="https://www.fmi.org/docs/default-source/gr/signed-cms-dir-letter-060719.pdf?sfvrsn=d125576e_2">28 Senators</a> and <a href="https://www.fmi.org/docs/default-source/gr/letter-admin-dir-rule.pdf?sfvrsn=4d73576e_2">105 House Members</a>, respectively, added their voice to the pharmacy DIR reform chorus. We look forward to working with policymakers to advance pharmacy DIR reform for the benefit of patients and pharmacies. Food retailers can advocate for this change, send a letter to your legislator <a href="https://p2a.co/bRqn1WL">here</a>. Media Statements: <ul> <li><a href="https://www.fmi.org/newsroom/latest-news/view/2019/06/10/pharmacy-united-in-call-for-president-trump-to-act-on-dir-fee-reform">Pharmacy United in Call for President Trump to Act on DIR Fee Reform</a></li> </ul> <ul> <li><a href="https://www.fmi.org/newsroom/latest-news/view/2019/06/20/105-u.s.-reps.-28-u.s.-senators-urge-trump-administration-to-fix-pharmacy-dir-fees">105 U.S. Reps., 28 U.S. Senators Urge Trump Administration to Fix Pharmacy DIR Fees</a></li> </ul> Information about the other participating organizations is available via their websites: <ul> <li><a href="https://www.ncpanet.org/">National Community Pharmacists Association</a></li> <li><a href="https://www.nacds.org/">National Association of Chain Drug Stores</a></li> <li><a href="https://naspnet.org/#/ms-1/1">National Association of Specialty Pharmacy</a></li> <li><a href="https://www.pharmacist.com/">American Pharmacists Association</a></li> <li><a href="https://www.nationalgrocers.org/">National Grocers Association</a></li> <li><a href="https://naspa.us/">National Alliance of State Pharmacy Associations</a></li> <li><a href="https://www.ascp.com/">American Society of Consultant Pharmacists</a></li> </ul> For more information, visit <a href="https://www.fmi.org/industry-topics/pharmacy">FMI.org/Industry-Topics/Pharmacy</a>

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Supporting West Virginia Communities

OMEGA members play a vital role in West Virginia, supporting communities through substantial tax contributions and a wide-reaching presence across the state. With over 55% of the population living in border counties, our members are dedicated to serving both local and regional needs. Beyond business, we’re proud to give back, having contributed over $3.1 million to children’s charities since 2003, reflecting our commitment to making a positive difference.