DEPARTMENT OF HEALTH & HUMAN SERVICES 
Health Care Financing Administration  
 Center for Medicaid and State Operations 
7500 Security Boulevard 
Baltimore, MD 21244-1850 
July 23, 1999    
Dear State Medicaid Director:    
This is the latest in a series of letters from the Health Care Financing Administration to inform you of its 
progress in preparing for the year 2000 (Y2K) and provide information on Y2K issues that may be helpful to 
you. Please find enclosed a fact sheet that speaks to the pharmaceutical industry's readiness to ensure the 
uninterrupted supplies of pharmaceuticals in the new year.    
  
As you know, many providers and consumers are concerned about their ability to get drugs and other 
pharmaceutical supplies in January 2000. To address this concern, the Pharmaceutical Industry Roundtable 
recently was convened by the President's Council on Year 2000 Conversion. Roundtable participants included a 
wide range of manufacturers, industry groups, retailers, providers, and others involved with the production, 
distribution, and sale of pharmaceuticals.    
The enclosed fact sheet provides highlights from the Roundtable, as well as a list of participant organizations. 
The bottom line is that the pharmaceutical industry is confident that pharmacists, governments, providers, and 
consumers should not experience any problems in getting the pharmaceuticals they need. The industry has 
adequate stocks on hand, as well as emergency response plans should problems arise. The Roundtable suggests 
that consumers request refills when there is a 5-to-7-day supply remaining of medications. Adopting strategies 
or other policies that encourage or require longer prescription drug supplies is counter productive and may 
actually precipitate drug shortages.    
Please feel free to reproduce and distribute this fact sheet to interested parties in your State. If you have 
questions, or need additional information, please contact Mary Hogan, our Y2K program coordinator, at 410-
786-6333.    
Sincerely,    
/S/    
Sally K. Richardson Director    
Enclosure    
cc: All HCFA Regional Administrators All HCFA Associate Regional Administrators for Medicaid and State 
Operations Lee Partridge American Public Human Services Association Joy Wilson National Conference of State 
Legislatures Matt Salo National Governors' Association     PRESIDENT'S COUNCIL ON YEAR 2000 CONVERSION  
Pharmaceutical Industry Roundtable    
Academy of  Government agencies and organizations within the pharmaceutical industry supply 
Managed Care  system (including manufacturers, group purchasers, distributors, pharmacies, mail 
Pharmacy  order pharmacies, hospitals, physicians, pharmacists, patient advocates, and insurers) 
have been working closely together to prepare for the Year 2000 date change and its 
impact on the supply of pharmaceuticals. Substantial progress (Y2K) has been made 
and government and industry are confident that the pharmaceutical supply system 
should continue to function normally through January 1, 2000. 
American Association of Health Plans 
American Hospital  Local pharmacists will be within easy access of a substantial supply of 
Association    pharmaceuticals. The industry typically operates with an average 90day supply in the 
distribution system among manufacturers, distributors, and pharmacies. 
American Medical Association 
American  It is advisable to get a normal refill of your medication when you have a 5 to 7 day 
Pharmaceutical  supply of medication remaining. This is good practice for January 1 1 2000 and for 
Association  any other time. The supply system is resilient and can correct any issue that might 
arise within 5 to 7 days. 
American Red Cross 
Department of  The pharmaceutical industry has emergency response plans in place and extensive 
Defense  past experience using these plans in handling disruptions caused by severe weather, 
transportation, or other unforeseen occurrences. 
Department of Health and Human Services 
Health Care Financing Administration 
Department of  If you use prescription medications and have any questions about your Affairs 
Veterans  supply, we recommend that you speak with your local pharmacist or doctor. Health 
Industry Distributors Association Health Insurance Association of America National 
Association of Chain Drug Stores National Wholesale Druggists' Association 
Pharmaceutical Research and Manufacturers of America  PRESIDENT'S COUNCIL ON YEAR    
2000 CONVERSION Pharmaceutical Industry Roundtable    
 
  The following organizations and individuals participated in the May 17, 1999, Y2K Pharmaceutical Roundtable:    
 
 
Academy of Managed Care Pharmacy   Drug Enforcement Agency  
Glaxo Wellcome     President's Council on Year 2000 Conversion   
Aetna, Inc. Health Care Financing Administration     Eckerd Corporation    
American Association of Health Plans     Rx2OOO Solutions Institute    
American Health Care Association     Eli Lilly and Company    
American Hospital Association     U.S. General Accounting Office    
American Medical Association     Federal Trade Commission    
American Pharmaceutical Association     U.S. Office of Personnel Management    
American Pharmaceutical Association     Food and Drug Administration    
Foundation American Red Cross American     U.S. Senate Special Committee on the Year   
Society of Health-System Pharmacists     Genentech, Inc.    
America's Blood Centers     2000 Technology Problem    
AmeriNet, Inc.     Generic Pharmaceutical Industry Association    
AmeriSource Corporations     Walgreens Co.   
Association for the Advancement of Retired Persons     Bristol-Myers Squibb Company   
Booz-Allen & Hamilton, Inc.     National Medical Association  
National Retail Federation     Association of Military Surgeons of the U.S.    
Cardinal Health, Inc.     Bindley Western Drug Company    
National Wholesale Druggists'Association     Health Industry Distributors Association    
Center for Y2K and Society     Health Industry Group Purchasing Association    
Odin Group     Health Insurance Association of America    
Columbia/HCA Health Care Corporation     Joint Commission on Accreditation of Healthcare Organizations   
PCS Health Systems, Inc.     Kaiser Permanente    
Copley Pharmaceutical, Inc.     Kapos Associates    
Pharmaceutical Research & Manufacturers of America     Laurene West, Patient Advocate    
Department of Defense     McKesson-HBOC    
Pharmacia & Upjohn, Inc.     National Association of Boards of Pharmacy    
Department of Health and Human Services     National Association of Chain Drug Stores    
Premier, Inc.     National Association of Insurance Commissioners    
Department of Veterans Affairs     National Association of Pharmaceutical Manufacturers    
Prescription Solutions/A Pacificare Company     National Community Pharmacists Association