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Medicaid Reimbursement Reduction Effective May 1, 2002!

OH Dept. of Jobs and Family Services to reduce pharmacy reimbursement.

Medicaid Reimbursement Reduction Effective May 1, 2002!
On March 11, 2002, a rule proposed by the Ohio Department of Jobs and Family Services to reduce pharmacy reimbursement was validated by a Joint Committee on Agency Rule Review (JCARR). This rule will reduce Medicaid pharmacy reimbursement from WAC + 11% down to WAC + 9%. This reduction will be effective May 1, 2002!
The reduction was initiated by the department to adhere to the state budget bill that called for a $150 million reduction in the state Medicaid budget. The Department estimates that this pharmacy reimbursement reduction will save them approximately $14.5-$16 million. OPA, along with many pharmacists, testified at the public hearing before the Department as well as at the hearing before JCARR to explain to legislators the drastic impact this cut may have on Ohio’s retail pharmacies and encouraged the state to look at other cost saving measures. The Department acknowledged our comments and agreed to pursue other cost savings measures, in addition to this reimbursement reduction. Thank you to all members who sent letters to state legislators in an effort to inform them about the impact of this reimbursement cut. OPA will continue to work on other ways to ensure that retail pharmacy is adequately reimbursed in Ohio.

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