AMCP Position on Use of Technology

Legislative and Regulatory Position Statement

The Academy of Managed Care Pharmacy (AMCP) supports the implementation and expanded use of health information technology (HIT), including electronic health records, electronic prescribing, electronic prior authorization, real time benefit check, telehealth, remote patient monitoring, digital therapeutics and other technology advancements that promote efficient use of healthcare resources, improve quality and patient and provider satisfaction. AMCP also supports the use of technology in the dispensing and delivery of prescription drugs to patients.  

Managed care pharmacy has developed a broad range of innovative and integrated strategies using state‐of‐the‐art technology to effectively manage prescription benefits for given patient populations. Industry standards have been developed and adopted for electronic prescribing, electronic prior authorization, and other transactions and processes. These standards allow for access to and use of patients’ health records in a productive and efficient manner while protecting patient information. Technology for accurate dispensing has been adopted in most pharmacy settings.  

The further implementation of standards for interoperability of electronic health records, electronic prescribing and electronic prior authorizations offers opportunities not only to improve patient care, but also to combat fraud, waste and abuse within the health care system. Integrated HIT systems can encourage the use of evidence‐based clinical guidelines. Interoperable electronic interchange of healthcare information can also help health plans and law enforcement monitor and share information regarding potentially fraudulent activity, suspected abuse, or drug diversion activities. At a time when some estimate that inappropriate or unnecessary care, fraud, and abuse account for almost one quarter of overall health spending, HIT offers opportunities to reduce health care costs without reducing the quality of care.

Electronic Health Records 

The Centers for Medicare & Medicaid Services (CMS) has recognized the value of technology in the provision of medical care via its adoption of standards and its promotion of the use of electronic health records (EHRs). EHRs have been shown to reduce errors through computerized prescriber order entry (CPOE) systems and lower costs due to reduced paperwork and fewer duplicate treatments and tests. Patient safety is improved as such systems facilitate the management of chronic conditions. 

Electronic Prescribing

Electronic transmission of prescription information offers benefits over written and oral prescriptions in terms of accuracy, storage capacity, accessibility, security, and productivity. Benefits of electronic prescriptions include the reduction of errors due to misinterpretation of handwritten prescriptions, confusion between similarly sounding drug names during oral transmission of prescription orders, and order‐entry errors.  

Electronic prescribing systems alert prescribers to potentially harmful drug interactions, patient drug allergies, and duplicate or overlapping drug therapy, enabling the prescriber to adjust the prescription before the pharmacy dispenses the drug. Electronic prescribing systems can also allow prescribers to access the formulary for a patient’s prescription drug benefit, ensuring that they select a therapy for which the patient has coverage, in addition to any clinical edits that may be present.  

Electronic Transmission of Prior Authorization

Electronic transmission of prior authorization requests from pharmacies and prescribers improves the quality of the request, reduces the time for review and improves the patient and prescriber experience. Prescribers often are not aware that a PA is needed until the prescription claim is rejected at the pharmacy. Pharmacists are often in the middle between the payer and the patient, contacting the prescriber for additional information. 

Electronic transmission of prior authorization has several benefits, including helping to proactively identify the need for a prior authorization, minimizing the information required to make a determination, and reducing the processing time. This can lead to improved access to needed medications. AMCP supports policies that would encourage integration of medical claims information to reduce administrative burden and facilitate the prior authorization process. 

Real-Time Prescription Benefit Check

A Real-time Prescription Benefit Check solution allows prescribers to see prescription benefit details at the point of prescription, such as patient out-of-pocket cost and coverage, formulary alternatives, and PA requirements. This capability enables providers to make informed medication choices for their patients and prevent a bad experience at the pharmacy counter.

Dispensing Systems

Technological advances have led to the development of innovative systems for automated drug counting, labeling, filling and delivery of prescription orders. The use of these systems is accepted as standard practice in community, hospital, and mail order pharmacies. Automated systems for dispensing allow the pharmacist to participate in appropriate medication selection and management of positive patient outcomes. 

Telehealth Visits 
Telehealth helps providers provide care for patients through virtual visits. Telehealth proved to be beneficial when dealing with the global pandemic, especially in less severe care cases that do not require an in-person visit. Telehealth reduces the cost of a visit.

Artificial Intelligence and Machine Learning
While technology to enhance patient care and improve clinical decision-making has been used for years, a desire to further drive quality and efficiency into the healthcare system is resulting in more stakeholders considering the use of or expanding the use of Artificial intelligence (AI). AI uses computer systems to perform tasks—such as reasoning, problem-solving, and planning—that typically require human intelligence. Machine learning (ML) is a subset of AI that uses algorithms and statistical models to make data-based predictions or decisions while automatically adapting to new information to improve performance over time. 

AI and ML have the potential to enable payers and providers to analyze vast amounts of data to create personalized treatment plans, optimize medication adherence, detect adverse drug interactions or prescription errors, and improve patients’ access to medications. AI algorithms can be used to tailor medication regimens that are both effective and cost-efficient. Through predictive modeling, AI may be used to forecast future healthcare needs, allowing for proactive interventions and better resource allocation. 

While AI and ML offer significant potential benefits in the administration of prescription drug benefits, there are also potential downsides in this rapidly evolving space that should be addressed by policymakers. For example, algorithmic bias may exacerbate disparities in healthcare access and outcomes. Reliance on AI for decision-making also raises ethical questions regarding patient privacy and autonomy, particularly if medical data is being used without a patient’s informed consent. Over-reliance on automated systems with reduced human oversight may increase the potential for errors that could have serious consequences for patient outcomes. For example, AI should not be used as the sole info source for creating clinical policies and should not replace evidence-based medicine concepts. The ongoing evolution of AI technologies means that regulators are struggling to keep pace, creating uncertainties around liability and accountability in the event of algorithmic failures or adverse outcomes. 

The use of responsible AI must incorporate appropriate testing, risk monitoring, and human oversight. AMCP encourages a public-private effort with policy makers and healthcare industry stakeholders partnering to align on a core set of standards and principles for AI regulation that put the patient in the center. The principles should include transparency in how the data is used, limitations of the data, and how the algorithms work; instilling trust in consumers by making systems explainable, usage of high-quality data sets and inputs leveraging industry standards to reduce bias, and appropriately protecting patient health information. Additionally, policies and regulation should be harmonized across jurisdictions to reduce a fragmented market approach while not stifling innovation. 

In summary, AMCP supports the adoption and use of national standards that promote system interoperability among providers and payers, and the use of requisite sets of functional elements necessary for optimizing medication access, safety, and cost‐effective utilization. Such standards have been developed to protect patient confidentiality and assure the accuracy and completeness of every transmission and record and improve the exchange of healthcare information to improve quality in a cost-efficient manner. 

See also: 

AMCP Legislative and Regulatory Positions 

Revised by the AMCP Board of Directors, July 2025
Revised by the AMCP Board of Directors, December 2020  
Approved by the AMCP Board of Directors, June 2013   

¹ Shrank WH, Rogstad TL, Parekh N. Waste in the US Health Care System: Estimated Costs and Potential for Savings. JAMA. 2019;322(15):1501–1509. doi:10.1001/jama.2019.13978. https://jamanetwork.com/journals/jama/article-abstract/2752664