Washington - Drugstore industry groups said they sued to block Medicaid, the US healthcare plan for the poor, from cutting payments for generic medicines.
The cuts, set to go into effect in January, may force independent stores to close, the National Association of Chain Drug Stores and the National Community Pharmacy Association said yesterday. Medicaid payments will be reduced to 36 percent less than pharmacies pay for the medications, the organizations said.
While the new formula would affect the largest chains, including Walgreen Co. and Woonsocket, R.I.-based CVS Caremark Corp., industry experts say the impact would be greatest at small pharmacies that depend more on Medicaid payments.
The trade groups said they project that Medicaid reimbursement rates will be cut by $8.4 billion over five years.
The new pricing and related changes will save $4.9 billion for the government during five years and $3.5 billion for states, which jointly fund the program, according to Medicaid.
