Rite Aid Officials Criticize Dispensing Fee Cut Proposed for Maine’s Medicaid Program

Officials from Rite Aid, the largest pharmacy chain in Maine, said on Tuesday that stores might stop filling prescriptions for beneficiaries of MaineCare, the state's Medicaid program, as well as decrease pharmacy hours and close some facilities if a proposed reimbursement cut is enacted, the Portland Press Herald reports. Gov. John Baldacci (D) has proposed a total of $22 million in cuts to the Medicaid program to lower the state's $108.5 million budget deficit. Those cuts include reducing pharmacists' Medicaid dispensing fees by 40%, from $3.35 to $2 per prescription, according to Trish Riley, director of the governor's Office of Health Policy and Finance. The dispensing fee reduction would result in an estimated $1.3 million in savings for the state, the Press Herald reports. Community Pharmacies, a Maine-owned group of 14 pharmacies, on Tuesday also requested that the governor repeal his proposal. Representatives from Rite Aid, Community Pharmacies and other drug stores are expected to attend a press conference at the statehouse to criticize the proposal. In addition, Rite Aid stores are distributing handouts to encourage customers to protest to the governor and state lawmakers, the Press Herald reports. Rite Aid officials also said that the chain will not take part in Maine Rx Plus, the state's new prescription drug discount plan, which requires that pharmacies provide Maine residents who do not have drug coverage with discounts on their medications. Rite Aid President and CEO Mary Sammons said, "[W]hile we want to keep serving all of our customers, we still have to cover our costs and make a fair profit." However, according to Riley, the dispensing fee cut would likely decrease Rite Aid's Medicaid revenues in Maine by 2%. Jody Cook, a spokesperson for Rite Aid, responded that the percentage would be high enough to close a store. According to the Maine Pharmacy Association, the dispensing fee cut could prompt many state pharmacies to choose not to participate in Maine Rx Plus (Huang/Carrier, Portland Press Herald, 1/7).