NACDS: Court ruling on AWPs shifts ‘urgency for action’ to states


ALEXANDRIA, Va. National Association of Chain Drug Stores president and CEO responded to a recent federal court decision over the reduction of average wholesale prices for prescription drugs.

The U.S. Court of Appeals for the First Circuit on Sept. 3 upheld the reduction of AWPs for drugs. Although NACDS president and CEO Steve Anderson cited the decision as a victory, the ruling “does not signify the end of the campaign, but rather shifts the urgency for action to other arenas. The fact remains that reduction of AWPs threatens to cut pharmacy reimbursement for drugs below their costs – an untenable position for any healthcare provider and for any business.”

Anderson added, “we renew our call today to state Medicaid programs to take the only viable course for patient care and to address the flawed reimbursement that the reduced AWPs will create. For the good of beneficiaries, pharmacy looks forward to working with public payers to address this fragile situation.”

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