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Feds reject Louisiana's Medicaid drug payment formula

2 years 6 months 6 days ago December 18, 2014 Dec 18, 2014 Thursday, December 18 2014 December 18, 2014 5:24 AM in News
Source: Associated Press
By: Hunter Robinson

BATON ROUGE - The federal Medicaid agency says Louisiana used an improper reimbursement formula to pay pharmacists the last two years through the state's Medicaid program.

If the U.S. Centers for Medicare and Medicaid Services decides it wants the state to reimburse the payments, the state could be on the hook for $25 million.

But Calder Lynch, chief of staff for the state Department of Health and Hospitals, said Wednesday the department hasn't heard if the state will be asked to repay anything. He says the department is appealing the disapproval.

Any possible budget impact wouldn't be felt for several years, because appeals tend to take a while to get a final decision.

At issue was a reimbursement formula Louisiana enacted in 2012. Federal officials rejected drug mark-ups the state negotiated with pharmacists.

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