EXHIBITS PROVIDED BY THE AMERICAN PHARMACEUTICAL STATEMENT OF THE AMERICAN PHARMACEUTICAL ASSOCIATION TO THE SELECT COMMITTEE ON SMALL BUSINESS OF THE UNITED STATES SENATE 94TH CONGRESS, 1ST SESSION WASHINGTON, D.C. MARCH 20, 1975 MR. CHAIRMAN, MEMBERS OF THE SUBCOMMITTEE, I AM DR. WILLIAM S. APPLE, EXECUTIVE DIRECTOR OF THE AMERICAN PHARMACEUTICAL ASSOCIATION (APHA) WHICH, AS YOU KNOW, IS THE NATIONAL PROFESSIONAL SOCIETY OF PHARMACISTS IN THE UNITED STATES. I AM PLEASED, ONCE AGAIN, TO APPEAR BEFORE THIS DISTINGUISHED COMMITTEE WITH MY ASSOCIATES, DR. EDWARD G. FELDMANN, ASSOCIATE EXECUTIVE DIRECTOR FOR SCIENTIFIC AFFAIRS, AND MR. CARL ROBERTS, APHA ASSOCIATE GENERAL COUNSEL. THIS IS THE THIRD OPPORTUNITY WHICH APHA HAS HAD TO EXPRESS ITS VIEWS DIRECTLY TO CONGRESS REGARDING THE MAXIMUM ALLOWABLE COST POLICY ANNOUNCED BY HEW SECRETARY WEINBERGER ON DECEMBER 19, 1973. HOWEVER, IT IS THE FIRST OPPORTUNITY WE HAVE HAD TO COMMENT ON THE PROPOSED IMPLEMENTATION OF THAT POLICY. SENATOR NELSON, I KNOW THAT YOU PERSONALLY ARE WELL AWARE THAT APHA HAS STOOD VIRTUALLY ALONE IN SUPPORT OF THE "MAC" POLICY SINCE IT WAS UNVEILED BY SECRETARY WEINBERGER. YOU KNOW THAT APHA HAS PUBLICLY ENDORSED THE BASIC CONCEPT EMBODIED IN THIS POLICY AS FAIR AND MAKING GOOD SENSE. IN TESTIMONY IN FEBRUARY OF LAST YEAR, APHA NOTED THAT-- THE FEDERAL GOVERNMENT AND THE TAXPAYERS WHO GOVERNMENT IS PAYING MORE FOR SOME DRUG PRODUCTS THAN IT SHOULD HAVE TO PAY." WE ALSO NOTED AT THAT TIME THAT, WHILE NO CONTROLS HAD BEEN APPLIED TO DRUG PRODUCT COSTS, THE PROFESSIONAL SERVICE COMPONENT OF THE PRESCRIPTION CHARGE HAS ALWAYS BEEN TIGHTLY REGULATED UNDER FEDERALLY SUPPORTED HEALTH CARE PROGRAMS: " . . WHILE DIRECT CONTROLS OVER THE FEES BOTH BY GOVERNMENT AND THE PRIVATE THIRD PARTY MANAGERS, NO SIMILAR CONTROLS HAVE BEEN COMPONENT OF THE PRESCRIPTION COST. DRUG PRODUCTS ARE PAID FOR ON THE BASIS OF |