News | July 28, 2010

NCPDP Delivers Compelling Testimony To NCVHS On National Health Plan Identifier

The National Council for Prescription Drug Programs (NCPDP) offered compelling testimony to the National Committee on Vital Health Statistics (NCVHS) last week on Proposals for a National Health Plan Identifier, citing the existing operational processes that have been successfully used in the pharmacy industry for over 25 years. The not-for-profit organization provided expert counsel and recommendations on the impact of the proposals to the pharmacy industry - which has realized tremendous operational efficiencies, improvements in patient care quality, and cost reductions by embracing automation and industry-wide adoption of standards.

NCPDP's testimony, delivered by Lynne Gilbertson, its Vice President, Standards Development, also included formal request for NCPDP to be named as an operating rules entity, as a qualified non-profit entity that fully satisfies the criteria established in H.R. 3590. Gilbert's testimony was supported by evidence of NCPDP's 30 years of experience developing standards based on business requirements through collaboration, as well as the organization's mission, infrastructure, consensus-based processes and operational procedures.

Margaret Weiker, Chair of the Accredited Standards Committee X12 (ASC X12) Insurance Subcommittee, gave powerful endorsement of NCPDP to NCVHS as an ANSI accredited candidate with the expertise to serve as the Operating Rule Entity for Healthcare Industry under the Patient Protection and Affordable Care Act (PPACA):

"ASC X12 supports NCPDP being named as an operating rule entity not only for the pharmacy services sector but for all of the healthcare industry. The reasons for this endorsement are NCPDP is an ANSI accredited organization, they have the infrastructure to support being named as an operating rule entity without any changes to their Bylaws or Standing Operating Procedures, many of their members use the ASC X12 standards, and since the first set of rules will focus on eligibility and claim status which have moved to a primarily real-time environment, NCPDP wrote the book on real-time healthcare data exchanges."

NCPDP has been at the forefront of industry transformation for over 30 years, bringing pharmacy and healthcare stakeholders together to develop industry standards that support the level of care consumers, clinicians and pharmacists rely on today. Its standards have been named in various government legislation and rulings, such as HIPAA and the Medicare Prescription Drug Benefit. Most recently, its SCRIPT Standard Implementation Guide Version 8, Release 1 (Version 8.1) October 2005 or NCPDP SCRIPT Standard, Implementation Guide, Version 10.6 was named in the Final Rule on Standards to meet Meaningful Use.

Founded in 1977, NCPDP is a not-for-profit, ANSI-accredited, Standards Development Organization with over 1500 members representing virtually every sector of the pharmacy services industry. Our diverse membership provides leadership and healthcare business solutions through education and standards, created using the consensus building process. NCPDP has been named in federal legislation, including HIPAA and the MMA. NCPDP members have created standards such as the Telecommunication Standard and Batch Standard, the SCRIPT Standard for e-Prescribing, the Manufacturers Rebate Standard and more to improve communication within the pharmacy industry. Our data services include the NCPDP Provider Identification Number, a unique identifier of over 75,000 pharmacies, and HCIdea, "The Prescriber Identity Solution. For more information, visit

SOURCE: The National Council for Prescription Drug Programs (NCPDP)