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Pharmacies Granted Restraining Order

By Joe Hren

Posted July 11, 2011

Pharmacies across Indiana won a temporary victory against Medicaid cuts in federal court after a judge granted a restraining order against the state.

Community Pharmacies of Indiana, an organization of independent Hoosier pharmacies, sued the Family and Social Services Administration and its Medicaid arm after the state announced pharmacy dispensing fees would be cut 38 percent. The fee reduction is now suspended, temporarily, after the judge issued a restraining order. Community Pharmacies General Counsel Bill Keown said he hopes the order will be a push for the state to go back to the negotiating table:

"I think that the state has a good opportunity to talk to us about compromise," Keown said.

Keown said pharmacies are willing to take some cut, but not one as large as the state made. But FSSA spokesman Marcus Barlow said the state stands by its decision to reduce the fee.

"We think that it's at an appropriate level. We've always stood behind that thought and so we're preparing for the hearing next month," Barlow said.

Barlow said if the state is ultimately forced to abandon the fee reduction, it will have to make cuts in other Medicaid programs. The permanent injunction hearing is set for August 24.

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