Indiana Judge Temporarily Blocks ‘Emergency’ Medicaid Cuts to Pharmacists

Indiana pharmacists on Aug. 21 won a temporary injunction to stop an "emergency" reduction in Medicaid reimbursements for prescriptions, the Indianapolis Star reports. On Tuesday, Marion Superior Court Judge S.K. Reid issued a restraining order stopping the emergency reduction and set a hearing on the matter for Sept. 21. The suit stems from Gov. Frank O'Bannon's (D) plan to cut nearly $100 million from the state Medicaid program's $1.15 billion drug budget by cutting the prescription fee pharmacists get to fill Medicaid prescriptions from $4 to $3 and "slic[ing]" drug markups by as much as half. According to the Star, the state proposed a plan to permanently reduce Medicaid drug reimbursements "months ago" -- a regulation that could still take effect if state Attorney General Stephen Carter (R) signs off on it this week. State officials, "fearing" Carter would reject the rule, notified pharmacists last week that the "identically worded" emergency reduction would begin Aug. 20 and may last as long as six months. Pharmacy officials have warned that the plan would "force" some pharmacies to reduce hours or even close stores that serve high numbers of Medicaid recipients. The two major pharmacies involved in the suit, Walgreen's and CVS, say if the cuts take place, store closings and reduced hours could affect more than 650,000 Medicaid beneficiaries, "as well as pharmacy patrons who shop in stores that fill a lot of Medicaid prescriptions" (Corcoran, Indianapolis Star, 8/22). For further information on state health policy in Indiana, visit State Health Facts Online.