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South Carolina Signs Law to Uphold Pharmacy Reimbursements

The National Association of Chain Drug Stores (NACDS) praises South Carolina for signing into law Thursday a provision that will hold pharmacies harmless from the recent average wholesale price (AWP) First DataBank/Medi-Span settlements, and pending approval from the Centers for Medicare and Medicaid Services (CMS), sets pharmacy reimbursement at wholesale acquisition cost plus (+)12.5%.

Alexandria, Va. – The National Association of Chain Drug Stores (NACDS) here praises South Carolina for signing into law Thursday a provision that will hold pharmacies harmless from the recent average wholesale price (AWP) First DataBank/Medi-Span settlements, and pending approval from the Centers for Medicare and Medicaid Services (CMS), sets pharmacy reimbursement at wholesale acquisition cost plus (+)12.5%.

The law also calls for an adjustment to the Medicaid dispensing fee should the federal average manufacturer’s price (AMP) provision become problematic for pharmacies in South Carolina.

The FirstDataBank/Medi-Span settlements refer to litigation surrounding the publishing of drug pricing data. The effect of the settlements is to change these data in a way that harms pharmacies, even though they were not parties in the litigation.

“This truly is a monumental achievement for pharmacy and patients in South Carolina. The pharmacy provisions in the law put patients first by preserving their access to pharmacy care,” said Steven C. Anderson, NACDS President and chief executive officer, in a press statement.

“The excessive rate cuts originally imposed placed a significant burden on pharmacies. The increased reimbursement rate will help preserve access to community pharmacies and maintain the vital pharmacist-patient relationship. This helps to foster medication adherence, which refers to patients’ taking their medications correctly, and that maintains health and ultimately prevents the need for higher-cost forms of healthcare.”

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