Louisiana And Texas Congressional Delegations Advocate Dispensing Fee Increase

Main Category: Medicare / Medicaid / SCHIP
Article Date: 14 Nov 2007 - 3:00 PDT

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The National Association of Chain Drug Stores (NACDS) applauded members of the Louisiana and Texas congressional delegations for supporting efforts to increase the Medicaid dispensing fee in their states.

Members of the Louisiana and Texas delegations sent letters to Centers for Medicare and Medicaid Services (CMS) Acting Administrator Kerry N. Weems, urging CMS to approve plans by their respective states to increase pharmacy dispensing fees in the Medicaid program. The signatories included both Senators and all seven Representatives from Louisiana, as well as twenty Representatives from the Texas delegation.

Pharmacies nationwide are facing over $8 billion in cuts to Medicaid reimbursements as a result of the Deficit Reduction Act (DRA) of 2005. When that bill was passed, Congressional leaders expressed their intention that states would increase dispensing fees to mitigate the effects of these dramatic cuts. Texas and Louisiana are among several states that responded by passing legislation to increase dispensing fees. However, CMS must give its approval for the increases to take effect.

"NACDS is very grateful to these Members of Congress for their support of higher dispensing fees," said NACDS President and CEO Steven C. Anderson, IOM, CAE. "The message to CMS is clear: adequate dispensing fees are necessary to help ensure that low-income patients maintain access to prescription medications."

In Louisiana, the combined results of three studies show that the average cost of dispensing a prescription in that state is $10.30. The current dispensing fee is $5.77, which the state plans to increase to $10.10.

In Texas, the average cost of dispensing a prescription is $10.54, according to a study by Grant Thornton LLP. The dispensing fee was $5.14, and the plan submitted to CMS increases the fee to $7.50.

Lobbying for higher dispensing fees is part of NACDS' "all branches, all levels of government" strategy for addressing the DRA cuts, which are schedule to take effect in January 2008. NACDS and the National Community Pharmacists Association also have filed a legal complaint to challenge CMS' final rule regarding Medicaid pharmacy reimbursement, and they maintain a vigorous campaign to secure federal legislation to address the issue.

httNational Association of Chain Drug Stores