Formulary Management

Drug Use Management

Policy 9909

11/01/1999 Introduced
03/01/2004 Reapproved
12/01/2008 Reapproved
10/01/2012 Reapproved
02/08/2017 Reapproved
02/08/2023 Revised

AMCP recognizes the value of drug use review (DUR) as a means to understand, interpret, evaluate, and improve the prescribing, administration, and use of medications to improve patient outcomes and total cost of care. Using DUR information, managed care pharmacists can identify prescribing trends and initiate corrective action in collaboration with appropriate stakeholders to improve drug therapy for groups of patients, as well as individuals.

 
(See AMCP Concepts in Managed Care Pharmacy – Drug Use Evaluation).

 

Formularies

Policy 9910

11/01/1999 Introduced
02/01/2005 Revised
02/01/2010 Reapproved

02/08/2017 Revised

04/23/2018 Revised

03/25/2019 Revised

AMCP supports the use of appropriately designed formularies as quality-enhancing, cost-effective pharmaceutical care tool that meets the needs of the patient population and assist members of the health care team in effectively managing a patient's total medical care regimen. Formulary coverage decisions are based primarily on sound clinical evidence. Cost should be considered only after safety, efficacy, therapeutic need and patient outcomes have been assessed. The value of a formulary is maximized when it is part of an integrated patient care process and integrates with other health care management tools, such as drug utilization review and medical treatment guidelines. The overall formulary system encourages physicians, pharmacists, and other care givers to work together to ensure positive outcomes and cost-effective results.

(See AMCP Where We Stand Position Statement – Formularies, and AMCP Concepts in Managed Care Pharmacy – Formulary Management)

 

Generic Drug Products

Policy 9911

11/01/1999 Introduced
02/01/2005 Revised
11/01/2009 Revised
02/01/2014 Revised

AMCP encourages pharmacists and managed health care systems to promote the use and benefits of FDA-approved and therapeutically equivalent generic drug products as safe, effective, and cost-effective alternatives to brand-name equivalents. AMCP supports legislative and regulatory changes that would promote the development and use of safe, efficacious and equivalent generic drugs and eliminate barriers that can unnecessarily delay the entry of the generic drugs into the marketplace. AMCP believes that Congress must ensure that the FDA has access to adequate resources in order to review and process applications for generic drugs and eliminate unnecessary delays of their approval.  AMCP opposes state and federal legislative and regulatory provisions that would restrict the right of pharmacists, in collaboration with prescribers and patients, to exercise their professional judgment in choosing the most appropriate generic or brand-name equivalent products for patients.

 

(See AMCP Where We Stand Position Statement – Generic Drugs)

(See also AMCP Where We Stand Position Statement – Biosimilar Drug Therapies)

 

Pharmacist's Role in Formulary Management

Policy 9922

 

11/01/1999 Introduced

03/01/2004 Revised

12/01/2008 Revised

10/01/2010 Reapproved

04/12/2021 Revised

AMCP supports the use of an appropriately designed formulary as a quality-enhancing, cost-effective pharmaceutical care tool that meets the needs of the patient population and assist members of the health care team in effectively managing a patient's total medical care regimen. AMCP further recognizes that pharmacists are key to the success of formulary management. Pharmacists determine the P&T Committee agenda; analyze and disseminate scientific, clinical, and health economic information for P&T Committee member review; follow-up with research when necessary; and communicate P&T Committee decisions to health plan prescribers, other health care professionals, and patients.


(See AMCP Concepts in Managed Care Pharmacy – Formulary Management and AMCP Where We Stand Position Statement – Formularies).

 

Therapeutic Interchange

Policy 9928

11/01/1999 Introduced
03/01/2004 Reapproved
12/01/2008 Reapproved
10/01/2012 Revised
03/25/2019 Revised
02/08/2024 Revised
AMCP supports the use of evidence-based therapeutic interchange programs as a part of a comprehensive approach to quality, cost-effective patient care. AMCP believes that therapeutic interchange may improve the patient's access to more affordable health care and represents an efficient use of pharmaceutical resources that helps keep medical costs down. The therapeutic interchange programs are designed to work in conjunction with other tools that health care professionals use to promote quality medical outcomes, and increase affordability to patients and payers. Therapeutic interchange is not always about simply lowering the medication costs; however, therapeutic interchange frequently occurs when overall health care savings can be achieved. There are instances where replacing one drug with a more costly drug may result in fewer treatment failures, better patient adherence to the treatment plan, fewer side effects, and improved clinical outcomes, which could result in lower overall health care spending.

(See AMCP Where We Stand Position Statement – Therapeutic Interchange)

Development of Quality Performance Measures

Policy 0006

02/01/2000 Introduced
02/01/2005 Revised
11/01/2009 Revised
02/21/2018 Revised
02/08/2023 Revised

 

AMCP recommends the continued development of standardized and reproducible evidence-based quality performance measures that are fair, attainable, meaningful, reproducible, and relevant. AMCP partners with complementary organizations to ensure alignment of all health care stakeholders in the pursuit of measures to improve the quality of patient care.

Prescription to Over the Counter "Rx-to-OTC"  Switches

Policy 0108

03/01/2001 Introduced
02/01/2006 Revised
02/01/2011 Revised
10/29/2019 Revised

AMCP supports the Food and Drug Administration’s regulatory process that allows the marketing of over-the-counter (OTC) drug products which were previously available by prescription only.  In the process of determining whether a drug product should be classified as prescription only or available as OTC, AMCP encourages that: (1) a range of stakeholders such as health care providers and managed care organizations be included in the evaluation process; (2) procedures to initiate petitions to switch drugs from one status to another be available to stakeholders; and (3) stakeholders take an active role in the FDA's scientific and clinical evaluation of drugs potentially eligible for OTC status. 

Patient Adherence and Persistence

Policy 0115

11/01/2001 Introduced
02/01/2006 Revised
12/01/2010 Revised

04/07/2015 Revised

 

AMCP supports programs that encourage patients to adhere to prescribed treatment regimens and continue those regimens (persistence) for maximum therapeutic benefit. Programs should be developed with knowledge of the patient's history, value for the prescribed treatment, and expected positive therapeutic outcome. AMCP believes that the pharmacist, as the medication management professional, has an important role in this process.  Such programs should use comprehensive communications and evidence-based approaches to support patient adherence and persistence.
Utilization Management

Policy 0401

02/01/2004 Introduced
12/01/2008 Reapproved
10/01/2012 Revised
02/08/2017 Revised
02/08/2023 Revised

AMCP supports the role of utilization management in the provision of quality, cost-effective prescription drug benefits. The fundamental goal of utilization management is to promote the appropriate and cost-effective use of medications and optimize patient outcomes. Pharmacists in all practice settings must work collaboratively to develop specific policies and procedures to ensure that the utilization management process is administered in the most efficient manner possible, is fully compliant with statutory and regulatory requirements and provides members, pharmacists and prescribers with an evidence-based, rational process to promote appropriate drug use. Examples of utilization management strategies used within a prescription drug benefit include, but not limited to, prior authorization, step therapy, quantity management, drug utilization review (DUR), channel management strategies, and the application of a formulary management system

(See AMCP Concepts in Managed Care Pharmacy – Prior Authorization).

Maximum Allowable Cost (MAC) Pricing

Policy 1301

10/01/2013 Introduced

AMCP believes that government regulation of prescription drug pricing, regardless of its structure, would have an overall negative impact on consumer cost, quality, and access to health care benefits.  Legislation that allows the government to dictate reimbursement terms of a private contract between a payer and a pharmacy or that mandates that the payer disclose proprietary pricing methodology is not an appropriate focus of government regulation.  Further, AMCP believes that competitive negotiations between parties are more likely to provide fair and equitable reimbursement on drugs dispensed.  AMCP does not support the intervention of government into private contracts to require payers to advise pharmacies on where to purchase their drugs; that is an unnecessary and inappropriate intrusion into the private arrangements of a pharmacy with its supplier.  This type of government mandate takes away the incentive for a pharmacy to make wise purchasing decisions.  The payers and consumers will not benefit from a system of government mandated payments to a private entity; rather it will decrease competition and further drive up the cost of the prescription drug benefit.

 
(See AMCP Where We Stand Position Statement – Government Regulation of Prescription Drug Prices)

 

Co-payment Offset Programs

Policy 1302

 

02/01/2013 Introduced

AMCP is supportive of programs that help patients afford their prescription drugs. However, some programs can needlessly encourage the use of more expensive brand-name products over their generic counterparts. They can also undermine the formulary development process by encouraging the use of products that have lower cost therapeutic alternatives. Patient safety can also be threatened when prescriptions are frequently transferred between retail pharmacies. Therefore, AMCP is opposed to manufacturer coupon programs that are promotional in nature and are not means-tested.

 

(See AMCP Where We Stand Position Statement – Co-Payment Offset Program)

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