US state loses $3M over reimb rate change

The northwestern US state of Washington is expected to lose at least $3.0 million because of a temporary court injunction that prevents the  state's Medicaid program from cutting reimbursements for branded  prescription drugs. The ruling was introduced at the end of March and  suspends a change the would have cut coverage of the premium  medicines from 86% to 80% of the average wholesale price.

A hearing scheduled for May 18 in the US District Court will hear  arguments from supporters and opponents of the reform. However, Doug  Porter, the Washington Medicaid Director, told the Seattle  Post-Intelligencer that "we're not going to be able to salvage this  during the current fiscal year," even if Judge Benjamin Settle resolves  the issue in the state's favor. In the meantime, the suspension is  costing Washington an estimated $1.0 million per month in higher  reimbursement costs, Mr Porter said.