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See Latest ArticlesNACDS and FMI File Motion to Prevent AWP Reductions
U.S. Pharmacist, 05/29/09
The National Association of Chain Drug Stores and the Food Marketing Institute filed a motion seeking a stay in federal district court in Massachusetts after the release of the final judgment in the First DataBank and Medi-Span lawsuit. The motion asks the district court to stop implementation of the approved average wholesale price reductions that would cut pharmacy reimbursement dramatically. In March, a judge of the United States District Court for the District of Massachusetts ruled to reduce the AWPs used to set pharmacy reimbursement rates to 120% of wholesale acquisition cost for 1,442 designated drug products, effective September 26, 2009. NACDS and FMI estimate that the reductions will cut Medicaid reimbursements by about $68 million each year. Pharmacies that are unable to renegotiate their private-sector reimbursement contracts will face a net 4% reduction in AWP-based reimbursements.
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