Indie pharmacists decry Medicaid cuts
To lower the federal deficit, the U.S. government has proposed $8 billion in cuts to Medicaid. Now a reimbursement plan for dispensing lower-cost generic drugs is causing an uproar among pharmacists.
More on Health, Politics, Washington, DC
TEXT OF STORY
Tess Vigeland: Cutting Medicaid costs is a big priority in Washington. Last year's Deficit Reduction Act featured billions in cuts to the health program for low-income people.
The government's about to publish the final rule on pharmacy fees for generic drugs. And as Helen Palmer reports from the Health Desk at WGBH, pharmacists are unhappy.
Helen Palmer: Pharmacists say even the government's own reports show the new formula for calculating reumbursement will be bad news for pharmacies.
Charles Sewell: Twenty-four of the 25 best-selling drugs in Medicaid, we're looking at a money-losing proposition.
That's Charles Sewell of the National Community Pharmacists Association. He represents over 23,000 independent pharmacies which get a quarter of their business from Medicaid.
Sewwll says the new benchmarks include rebates and discounts that huge drug buyers get, but small pharmacies can't.
Sewell: A lot of our pharmacies are gonna be forced out of the Medicaid program, and this is not gonna be good for patients anywhere.
He points out that 5 percent of independent pharmacies have thrown in the towel in the last year, because the new Medicare drug program pays — as he puts it — "low and slow." This rule would be the second body blow.
Still, John Costa of the National Association of Chain Drug Stores says the states, which control some dispensing costs, can help:
John Costa: We're hopeful that the states will increase their fees next year to compensate for the loss on the product side.
Costa says states understand the value of the local pharmacy, particularly in rural areas and inner cities.
Dick Cauchi of the National Association of State Legislatures says some states are already acting.
Dick Cauchi: Illinois has a $1.20 more reimbursement for a generic than for a brand name. And there are a couple other examples like that.
But the pharmacy lobby hopes that since most states are also trying to hold down Medicaid spending, there'll be some relief at the federal level attached to one of the health care bills still outstanding on Capitol Hill.
In Boston, I'm Helen Palmer for Marketplace.
