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Document 14 of 60.

March 21, 2000, Tuesday

SECTION: PREPARED TESTIMONY

LENGTH: 771 words

HEADLINE: PREPARED STATEMENT OF CALVIN J. ANTHONY

BEFORE THE SENATE HEALTH, EDUCATION, LABOR AND PENSIONS COMMITTEE

BODY:
Mr. Chairman, Members of the Committee:

I am Calvin J. Anthony. I serve as the Executive Vice President of the National Community Pharmacists Association (NCPA), formerly the National Association of Retail Druggists. I am accompanied today by John M. Rector, Sr. Vice President Government Affairs and General Counsel for NCPA.

I want to thank you for inviting us to testify on the Regulation of Internet Pharmacies and Pharmacists. The National Community Pharmacists Association (NCPA) represents more than 30,000 independent pharmacies, where over 75,000 pharmacists dispense most of the nation's prescriptions and related services.Independent pharmacists serve 18 million persons daily. NCPA has long been acknowledged as the sole advocate for this vital component of the free enterprise system.

For decades we have been the only national pharmacy association with universal state association membership, including those of the Committee's members.

Our members function in the market in a variety of forms. They do business as single stores ranging from apothecaries to full line high volume pharmacies; as independent chains (e.g. 100 pharmacies) and as franchises such as the 1200 NCPA members involved with the Medicine Shoppes franchise. Whatever the form of business entity, however, independent pharmacists are the decision makers for this wide variety of NCPA member companies.

As owners, managers and employees of independent pharmacies, our members are committed to legislative and regulatory initiatives designed to protect the public and to provide the pharmacist a level playing field and a fair chance to compete. We appreciate the opportunity to assist the Committee in assessing the regulation of Internet pharmacies and pharmacists.

First and foremost we are guided by the premise, universally upheld by the courts, that the regulation of the practice of pharmacy and other learned professions rests exclusively with the respective states. This authority includes the registration of a pharmacist to practice pharmacy. In recent years the agencies delegated to exercise the state authority, typically the State Board of Pharmacy, appointed by the Governor, have struggled to provide consumers equitable protection when pharmacy is practiced interstate via the US mail or by private mail order companies.

NCPA sees Internet pharmacy as a wonderful vehicle for good patient education and care if the proper safeguards are in place. However, if controls are not in place or enforced these enterprises can be an insidious problem. While most Internet pharmacy models are based on mail order pharmacy, some are not. Those that do utilize mail order create a significant number of issues and concerns that non mail order models do not.

Additionally, the magnitude of international technology like the Internet raises enormous issues and concerns for those trying to assure the quality and care that patients have a right to expect.

The advent of mail order pharmacy marketed via the Internet has only served to further challenge state efforts to equitably protect consumers. There may be opportunities to help control illegal interstate activities by Internet pharmacies while fully respecting the exclusive authority of the states to regulate the practice of pharmacy:

(1) Internet businesses could be federally required to verify the state registration(s) of their pharmacies and pharmacists.

(2) Internet business could be required to disclose the state registration(s) of their pharmacies and pharmacists, on their sites.

(3) Internet pharmacies and pharmacists could be penalized for selling a prescription drug without a prescription from a physician fully in accord with the laws of the relevant states. The Administration has suggested a $500,000 penalty. We recommend that any new federal penalty be targeted at conduct akin to laws such as those dealing with a continuing criminal enterprise .

Also, we support the priority application of current laws (e.g. RICO and the Prescription Drug Marketing Act) by the Treasury, Health and Human Services, and Justice Departments and the vigorous investigation and appropriate prosecution of the so called "rogue" Internet pharmacies, whether they are doing business in the US or through offshore imports.

Whatever additional steps are adopted it is essential that patient care provided by properly licensed pharmacies and pharmacists engaged in lawful conduct not be the targets of unnecessary investigations or regulations.

We look forward to assisting the Committee as it assesses the regulations of Internet pharmacies.

END

LOAD-DATE: March 23, 2000

Document 14 of 60.


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