California Pharmacist Coalition Calls for Federal Agencies to Reject Proposed Medi-Cal Cuts

Pharmacy Choice and Access Now (PCAN) Opposes State's Action To Reduce Medi-Cal Reimbursement Rates By Another 10 Percent

SACRAMENTO, Calif., July 11, 2011 /PRNewswire-USNewswire/ -- The newly formed coalition, Pharmacy Choice and Access Now (PCAN), joins other California health care access and medical providers in urging Health and Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) to reject California's State Plan Amendment that would reduce Medi-Cal reimbursement rates by 10 percent, which would result in a significant reduction in health care access.  This recent action by the state is a result of the March 2011 budget.

"We urge the Federal government to block the state's request that would threaten health care access to millions of Californians on Medi-Cal," said Paul Rohrer, president & chief executive officer of the Professional Pharmacy Alliance of California (PPAC) and PCAN coalition member.  "If the state action is granted, both rural and urban underserved communities across California will be adversely impacted as independent pharmacists are often the only access these Medi-Cal patients have to the medications they need and it will become too costly for many pharmacies to remain open." 

According to the California Academy of Family Physicians, Medi-Cal payment rates are 20 percent lower than the national average Medicaid rates and that the state ranks 47th out of 50 in provider payment rates.  The state's request, if granted by HHS and CMS, will cut reimbursement payments by 10 percent.

Rohrer continues, "The cuts to pharmacies will reduce reimbursement rates for the dispensing of medications, in some instances, below their actual cost of service.  If pharmacies cannot recover fair compensation for drug acquisition and servicing costs, we will likely see a severe reduction in the number of pharmacies that participate in Medi-Cal and employ thousands of Californians."

In the past, the courts have blocked similar proposed reimbursement cuts as the U.S. District Court for the Central District of California in 2008 found that patients would be "irreparably harmed" if the cuts were not denied.  This autumn, the U.S. Supreme Court will hear this case and will consider whether Medi-Cal beneficiaries and providers have legal standing to bring a lawsuit enforcing the Federal Medicaid Act and declare that a provision of the Federal law preempts state laws that reduce reimbursement rates.

"The California Retailers Association is urging the Federal government to reject the proposed Medi-Cal State Plan Amendment as it will severely restrict beneficiaries' access to important health care services," said Bill Dombrowski, president and chief executive officer of the California Retailers Association (CRA) and PCAN coalition member.  "We are deeply concerned by the state's decision as we believe that a better solution is to work with the provider community to develop alternate cost-saving proposals that will maintain health care access."

PCAN is a newly-announced coalition that is committed to preserving quality and affordable health care and pharmacy services for patients.  The coalition will work closely with providers and health care access advocates to provide the most cost-effective health care solutions for the state.

About PCAN

Pharmacy Choice and Access Now (PCAN) is a coalition of consumers, local business and pharmacists across the nation committed to preserving quality and affordable health care and pharmacy services for patients.  We are committed to providing the most cost-effective solutions in the areas of health care and pharmacy services to enable states around the country to help solve their budget woes, while maintaining quality care for children, families and other Medicaid-served populations.

For more information on Pharmacy Choice and Access Now (PCAN), visit www.rxchoiceandaccess.com.

SOURCE Pharmacy Choice and Access Now

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