Nimitz News

VA to fill prescriptions from private doctors for 1st time Restriction changed because of backlog; drug benefit could be extended even more
By William M. Welch
USA TODAY

WASHINGTON -- Swamped by demand for inexpensive prescription drugs, the Department of Veterans Affairs' health care system will permit thousands of veterans for the first time to fill prescriptions from private physicians at the VA and receive subsidized medicines.

The decision will open the agency's sought-after prescription-drug benefit to an estimated 200,000 veterans who have been waiting more than 30 days to see a VA physician. The VA charges a low $7 fee for a 30-day supply of drugs and uses its market clout to demand rock-bottom prices from drugmakers.

Until now, the VA medical system has refused to fill prescriptions written by private physicians. It has required veterans to see a VA doctor first and filled only those prescriptions written by its own doctors.

The reversal comes as the Bush administration is struggling to show that its 10-year, $400 billion plan for prescription-drug coverage through Medicare would benefit seniors more than pharmaceutical manufacturers. This week, the Food and Drug Administration strongly opposed a proposal in the House of Representatives that would make it easier to re-import cheaper drugs from Canada and Europe.

Veterans Affairs Secretary Anthony Principi will announce the new policy today or Friday. The new policy applies to veterans of all ages, enrolled with the VA as of Friday,who have waited more than 30 days to see a VA doctor.

As VA enrollment has surged, driven by demand for affordable drugs, some veterans have faced waits of six months and even a year to see a doctor. Greatest demand is among seniors on Medicare, which lacks a drug benefit.

Until now, Principi opposed having the VA fill privately written prescriptions. He had said he didn't want the VA medical system ''becoming a drug store'' for 25 million veterans. That could limit the VA's ability to care for veterans who need it, he said. But in an interview Wednesday, Principi said he had decided to change the policy because of the severity of the VA case backlog.

''There are too many veterans who have to wait more than 30 days for primary care,'' he said. Many ''are turning to us because they can't get prescription drugs without spending a fortune or going to Canada.''

Principi said he would consider a second step, permitting all enrolled veterans to fill privately written prescriptions at the VA, in six months. He said he expects the first step to cost $20 million to $30 million this year, which the VA will fund from its $57 billion budget.

Principi and the VA have been under pressure from veterans' advocates in Congress to drop the restriction to VA-written prescriptions. Several bills in Congress would order the change. Principi sought and received earlier this month a ruling from the Justice Department that he has the authority to make the change.

Studies have found VA prices well below those charged by retail pharmacies and those paid by private insurers and other government programs. The VA has achieved savings by using cheaper generics, buying in bulk, distributing by mail and using its clout in the marketplace.