Pharmacy groups sue over Medicaid drug cuts :: American Medical News

The complaints allege that officials in California, Minnesota, New York and Washington violated federal laws aimed at ensuring equal access to care.

By Amy Lynn Sorrel

Cuts to Medicaid prescription drug payments in four states could jeopardize patients' access to needed medications, according to separate lawsuits filed by several national and state pharmacy organizations.

The National Assn. of Chain Drug Stores, the National Community Pharmacists Assn. and local pharmacy groups allege that the state Medicaid programs are basing their payment rates on artificially low benchmarks for the average wholesale price for various prescription drugs. As a result, many pharmacies are being paid well below the cost of stocking medications and may be forced either to drop their Medicaid contracts or close their doors altogether, according to complaints filed Sept. 29 in separate federal courts in California, Minnesota, New York and Washington.

The pharmacy organizations argue that the reductions violate federal laws requiring payment rates be set at sufficient levels to ensure that Medicaid patients have the same access to prescription drugs as patients who are not participating in federal health care programs.
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