Pharmacy Groups Sue California, Others Over Medicaid Payments
On Wednesday, a coalition of pharmacy groups filed lawsuits alleging that California, New York and Washington state provide insufficient Medicaid reimbursements for prescription drugs, Reuters reports.
The National Association of Chain Drug Stores, the National Community Pharmacists Association and other smaller groups said the three states had not adjusted their rates to account for the new average wholesale price for prescription drugs, which was set on Sept. 26.
The plaintiffs argue that the three states violated the Social Security Act and failed to obtain required CMS approval for their Medicaid payment rates.
Don Bell, an attorney for the chain drug stores, said the states' reimbursements rates could cost pharmacies up to $200 million per year.
If pharmacies decide to terminate their Medicaid contracts, patients might need to seek prescription drugs at physician offices or emergency departments, according to Bruce Roberts, CEO of the community pharmacists group (Gralla, Reuters, 9/30).
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