MMR: Mass Market Retailers, October 1, 2018

10 MMR October 1 2018 OPINION MMR NACDS Advocacy Moves Needle By Jeffrey Woldt Amid all the turmoil in retailing health care and government the National Association of Chain Drug Stores continues to distinguish itself through steadfast advocacy of community pharmacy By exercising patience and persistence while at the same time possessing the readiness to seize opportunities whenever and wherever they arise NACDS delivers meaningful results for its member companies and the people they serve Several developments in recent weeks illustrate the impact that the association has on issues that affect pharmacy In mid September the Senate passed a series of measures designed to counter the opioid abuse epidemic that includes the NACDS backed Every Prescription Conveyed Securely Act Introduced by Sens Michael Bennett D Colo and Dean Heller R Nev the legislation would with limited exceptions to ensure that patients who have a legitimate need for such medications have access to them require electronic prescribing for most controlled substances dispensed under the Medicare Part D program The House earlier passed similar legislation introduced by Reps Katherine Clark D Mass and Markwayne Mullin R Okla A conference committee will now try to hammer out differences between the two measures and other bills intended to curb fraud abuse and waste under Medicare Part D NACDS recommends greater reliance on electronic prescribing for this purpose based on pharmacists firsthand experiences on the front lines of health care delivery says Steve Anderson president and chief executive officer of the association This is an important part of the comprehensive efforts to keep opioids out of the wrong hands That message is also resonating at the state level Mandatory electronic prescribing legislation has been enacted in six states this year six others already have it in place and similar measures are pending in several additional states Another issue of concern to community pharmacy operators that NACDS has helped bring to the forefront is the elimination of so called gag clauses that prevent pharmacists from informing patients about ways to reduce outof pocket costs for prescription medications The Senate recently passed a bill the Patient Right to Know Prices Act that would do just that in private insurance plans The measure sponsored by Sen Susan Collins R Maine complements the Know the Lowest Price Act which was sponsored by Sen Debbie Stabenow D Mich and addresses pharmacists dealings with patients Association delivers meaningful results for members and the people they serve enrolled in Medicare Part D and Medicare Advantage plans A similar bill introduced by Rep Buddy Carter R Ga has been advanced by the House Committee on Energy and Commerce NACDS involvement in issues around drug pricing reflects its determination to do everything it can to foster pro patient propharmacy policies Doing away with gag clauses will enable pharmacists to help patients cope with rising prescription drug costs which for many of them is one of the major impediments to adhering to medication regimens and achieving optimal outcomes The ongoing engagement by NACDS may be most evident in issues related to pharmacy and health care which account for some 70 of sales at drug chains but it extends to every aspect of the store One of the associations top priorities is countering the Trump administrations trade policies which have the potential to cause major disruptions in the supply chain and adversely affect consumers After lending its voice to the chorus of opposition to the failed border adjustment tax a year ago NACDS is once again on the front lines in trying to thwart escalation of the simmering trade war with China and other countries During his remarks at last months Total Store Expo in Denver Anderson was clear about whats at stake The emerging trade war could jeopardize much of what you are doing to transform your business and this great industry This trade dispute has already involved tariffs on billions of dollars of goods and has targeted hundreds of billions of dollars more Diverse products packaging and equipment already are being affected And more items are being added to the tariff list There are increased freight costs too This matters to the entire supply chain Think about it It affects the products on store shelves It affects the process of getting those products to the shelves And it even affects the shelves themselves given rising steel costs NACDS subsequently joined Americans for Free Trade a coalition of businesses trade groups and workers to highlight the adverse economic effects of new tariffs imposed by the United States and the countermeasures of other nations In addition the association recently sponsored an ad campaign directed at policy makers in the nations capital that addressed the negative economic impact that could result from President Trumps approach to solving trade disputes As its involvement in the fight over tariffs proves NACDS is prepared to intervene whenever the interests of chain pharmacy and its customers are endangered The industry is indeed fortunate to have such a forceful and effective advocate The Economic Horizon Has One Dark Cloud By Scot Meyer As this issue of MMR goes to press the economic forecast for the retail industry looks bright Unemployment is low and the stock market is high Consumer confidence is strong and retail sales projections for the rest of the year including the holiday season are rosy There is really only one dark cloud on the horizon but retailers are afraid it could be a big one Its the possibility of a protracted trade war with China On September 17 the Trump administration announced 10 tariffs on 200 billion worth of imports from China The tariffs which were set to go into effect on September 24 will increase to 25 at the end of this year Every time this trade war escalates the risk to U S consumers grows National Retail Federation NRF president and chief executive officer Matthew Shay said With these latest tariffs many hard working Americans will soon wonder why their shopping bills are higher and their budgets feel stretched Walmart made a similar point in a letter it sent earlier last month to U S Trade Representative Robert Lighthizer The company said in its letter that tariffs on Chinese imports may force it to raise the prices on the merchandise in its stores As the largest retailer in the United States and a major buyer of U S manufactured goods we are very concerned about the impacts these tariffs would have on our business our customers our suppliers and the U S economy as a whole Walmart wrote Retailers have been warning for months about the risks that tariffs pose to the U S economy and they are continuing to raise their voices Last month the NRF the Grocery Manufacturers Association the Retail Industry Leaders Association and the National Association of Chain Drug Stores were among the 80 trade groups that formed Americans for Free Trade a coalition representing U S manufacturers farmers and agribusiness retailers technology companies service suppliers natural gas and oil companies importers exporters and other supply chain stakeholders Every sector of the U S economy stands to lose in a trade war NRFs Shay said The coalition expressed its concerns in a letter to congressional leaders perhaps hoping they could help it convey the message that the stakes for the entire U S economy are high and trade wars are in fact not easy to win Fight Against Swipe Fees Is Hardly Over WASHINGTON Retailers are gearing up for the next round in their long running fight with the worlds largest payment networks after Visa Inc Mastercard Inc and other financial institutions agreed to pay about 62 billion to settle an antitrust lawsuit with merchants over the fees they pay when they accept card payments Retail industry trade groups note that the proposed settlement which awaits court approval only addresses the monetary damages portion of the massive lawsuit A separate class of merchants seeks changes to the business practices of Visa and Mastercard The monetary settlement doesnt solve the problem said Stephanie Martz senior vice president and general counsel at the National Retail Federation Swipe fees cost retailers and their customers tens of billions of dollars a year and have been skyrocketing for nearly two decades Ending the practices that lead to these anticompetitive fees is the only way to give merchants and consumers full relief once and for all Merchants brought the class action lawsuit against the big U S card issuing banks in 2005 Many large retailers opted out of a proposed 72 billion settlement in 2012 which would have barred them from filing lawsuits against the networks over future swipefee increases In the settlement reached September 18 the financial institutions said they expect to be relieved of future monetary claims related to their fee structures for at least five years after resolution of appeals The settlement is just another symptom of our nations broken payment ecosystem It still offers merchants only pennies on the dollar for the harms they suffered as a result of the anticompetitive rules backed by the card networks and big banks said Deborah White of the Retail Industry Leaders Association More importantly the proposal does not provide for any changes in those rules and would limit the ability to pursue meaningful change of the rules that the payments card cartel will install to govern the payment ecosystem in the future White said Every sector stands to lose JEFFREY WOLDT Vice President Editorial Director Phone 212 699 2326 jwoldt@ racherpress com SCOT MEYER Managing Editor Phone 212 699 2312 smeyer@ racherpress com MARK BAUMGARTNER Senior Editor Phone 212 699 2334 mbaumgartner @ racherpress com MARK WOLZ Copy Editor Phone 212 699 2330 mwolz@ racherpress com DAVID PINTO President SUSAN SCHINITSKY Secretary Treasurer CLARE GREEN Art Director Phone 212 213 6000 BILL BUCKLEY Art Director Phone 212 699 2331 bbuckley@ racherpress com JOSEPH COLUCCI Art Director Phone 212 699 2397 jcolucci@ racherpress com LESLIE SELDIN Desk Editor Phone 212 699 2389 lseldin@ racherpress com Published by RACHER PRESS INC 126 Fifth Ave 12th Floor New York N Y 10011 212 213 6000 Fax 212 725 4594 JOHN DIOGUARDI Director Sales Marketing Phone 212 699 2361 johnnyd@ racherpress com CHRIS WHITE Regional Sales Manager Midwest West Phone 312 925 7485 cwhite@ racherpress com PEGGY NAVARRE Production Manager Phone 212 699 2371 pnavarre@ racherpress com PAM VANDERNOTH Circulation Subscriptions Director Phone 212 699 2362 pvandernoth @ racherpress com VOL 35 NO 13 October 1 2018 DAVID PINTO Editor SUSAN SCHINITSKY Publisher