NACDS, FMI file legal brief against AWP reductions in First DataBank/Medi-Span lawsuit

ALEXANDRIA, Va. An organization representing the country’s retail pharmacy chains has filed a legal brief with an appellate court challenging a settlement that reduces average wholesale prices.

The National Association of Chain Drug Stores announced Monday that it and the Food Marketing Institute had filed the brief with the U.S. Court of Appeals for the First Circuit challenging First DataBank and Medi-Span settlements to reduce AWPs. The two organizations said that AWP cuts would cut Medicaid reimbursements for many pharmacies, cutting total Medicaid reimbursements by about $68 million a year.

“Patient access to pharmacy is at risk if the pending settlements are implemented as they will cut Medicaid reimbursement rates for many pharmacies to devastating levels,” NACDS president and CEO Steven Anderson said in a statement. “Patient access should not be compromised. In filing the appeal, we urge that the court not penalize pharmacies but instead rule on the side of patients.”

In April, the two organizations filed a motion seeking a stay to halt the implementation of the reductions. The court is scheduled to hold a hearing with oral arguments during the last week of July.