Colorado Pharmacists Say Proposed Reimbursement Cuts Could ‘Force’ Some Out of Medicaid Program

Proposed cuts to Colorado's Medicaid drug reimbursements could "force" some pharmacies out of participating in the program and limit the number of locations where Medicaid beneficiaries could fill their prescriptions, the Denver Post reports. Reimbursements for drugs dispensed to Medicaid beneficiaries are based on the average wholesale price of the drug's ingredients reduced by a certain percentage. The reimbursement cut -- which was proposed by the state's Department of Health Care Policy and Financing as part of a fiscal year 2002 budget submitted to the state's General Assembly -- would change the reimbursement formula by increasing from 11% to 15% the percentage subtracted from the average wholesale price. The proposed change also would reduce pharmacists' dispensing fee from $4 per prescription to $2. Mark Kinney, executive director of Rx Plus Pharmacies, a trade association of independent pharmacies, said, "The state cannot contain Medicaid costs by simply cutting pharmacy reimbursement rates. The state needs a long-term solution, not a Band-Aid." But Richard Allen, director of the state's Medicaid program, said the changes are "only fair." He added, "I can never assure that 100% of the pharmacies that are participating today will participate tomorrow, but we're sure we will have adequate access for Medicaid patients throughout the state" (McGhee, Denver Post, 12/5).