Factors associated with independent pharmacy owners' satisfaction with Medicare Part D contracts.
BACKGROUND
As Medicare Part D contracts apply pressure on the profitability of independent pharmacies, there is concern about their owners' willingness to sign such contracts. Identifying factors affecting independent pharmacy owners' satisfaction with Medicare Part D contracts could inform policy makers in managing Medicare Part D.


OBJECTIVE
(1) To identify influences on independent pharmacy owners' satisfaction with Medicare Part D contracts and (2) to characterize comments made by independent pharmacy owners about Medicare Part D.


METHODS
This cross-sectional study used a mail survey of independent pharmacy owners in 15 states comprising 6 Medicare regions to collect information on their most- and least-favorable Medicare Part D contracts, including satisfaction, contract management activities, market position, pharmacy operation, and specific payment levels on brand and generic drugs.


RESULTS
Of the 1649 surveys mailed, 296 surveys were analyzed. The regression models for satisfaction with both the least and the most-favorable Part D contracts were significant (P<0.05). A different set of significant influences on satisfaction was identified for each regression model. For the most-favorable contract, influences were contending and equity. For the least-favorable contract, influences were negotiation, equity, generic rate bonus, and medication therapy management (MTM) payment. About one-third of the survey respondents made at least 1 comment. The most frequent themes in the comments were that Medicare Part D reimbursement rate is too low (28%) and that contracts are offered without negotiation in a "take it or leave it" manner (20%).


CONCLUSIONS
Equity, contending, negotiation, generic rate bonus, and MTM payments were identified as the influences of independent pharmacy owners' satisfaction toward Medicare Part D contracts. Generic rate bonus and MTM payment provide additional financial incentives to less financially favorable contracts and, in turn, contribute to independent pharmacy owner's satisfaction toward these contracts.
Pharmacy Practice and Science, College of Pharmacy, University of Iowa, S518 PHAR, Iowa City, IA 52242, USA.
Su
S
Zhang
William R
WR
Doucette
Julie M
JM
Urmie
Yang
Y
Xie
John M
JM
Brooks
D003132:Commerce / Q000191:economics / Q000331:legislation & jurisprudence; D003157:Community Pharmacy Services / Q000191:economics / Q000331:legislation & jurisprudence*; D032982:Contracts / Q000191:economics / Q000331:legislation & jurisprudence*; D003363:Cost Control; D003430:Cross-Sectional Studies; D016527:Drug Costs / Q000331:legislation & jurisprudence; D016568:Drugs, Generic / Q000627:therapeutic use; D018166:Health Care Reform; D019538:Health Care Surveys; D006297:Health Services Accessibility / Q000191:economics / Q000331:legislation & jurisprudence; D006302:Health Services Research; D006801:Humans; D019458:Insurance Coverage / Q000191:economics / Q000331:legislation & jurisprudence*; D007356:Insurance, Pharmaceutical Services / Q000191:economics / Q000331:legislation & jurisprudence*; D054524:Medicare Part D / Q000191:economics / Q000331:legislation & jurisprudence*; D017008:Negotiating; D010549:Personal Satisfaction; D010595:Pharmacists / Q000191:economics / Q000331:legislation & jurisprudence* / Q000523:psychology; D055553:Prescription Drugs / Q000191:economics / Q000627:therapeutic use*; D012052:Reimbursement, Incentive / Q000191:economics / Q000331:legislation & jurisprudence; D011795:Surveys and Questionnaires; D014481:United States
D016568:Drugs, Generic; D055553:Prescription Drugs