Massachusetts Governor, Chain Drugstores Reach Temporary Agreement To Delay Medicaid Pharmacy Cuts

Acting Massachusetts Gov. Jane Swift (R) on Aug. 1 reached a temporary agreement with the state's three largest drugstore chains to preserve current Medicaid prescription reimbursement levels until October, averting the drugstores' plans to make an abrupt exit from the Medicaid program because of lower payments, the Boston Globe reports. The three chains, CVS Corp., Walgreen Co. and Brooks Pharmacy, said earlier this week that they would leave the state's Medicaid program after Swift approved a proposed reimbursement cut, and other independent operators were expected to follow suit. Both CVS and Walgreen said that they will continue to fill Medicaid prescriptions; although Brooks officials had no comment, that chain is also expected to remain in the program. Under the agreement, the state will continue to reimburse pharmacies for Medicaid prescriptions at the current rate until Oct. 2, when a new rate will be established and "applied retroactively to cover prescriptions filled in the interim," Swift said. Pharmacies will also be required to give 30 days notice before exiting the state's Medicaid program. The state has scheduled a Sept. 5 public hearing on the issue (Reidy/Tangney, Boston Globe, 8/2).
PRI's "Marketplace" on Aug. 1 reported on the compromise. A transcript of the segment is available online . In addition, the segment is available online in RealPlayer Audio.