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Washington State Drops Budget Provision That Would Have Cut Medicaid Pharmacy Payments
Washington state lawmakers this week eliminated a budgetary proposal that would have reduced Medicaid payment rates to pharmacies to the lowest levels in the country, the AP/Spokane Spokesman-Review reports. The provision would have reduced the payment rate from 86% to 80% of the average wholesale price of branded drugs. It had been approved by the state House and Gov. Chris Gregoire (D) and was intended to address the state"s $9.3 billion shortfall for the current fiscal year.The state"s Department of Social and Health Services moved to make the rate change on April 1, but pharmacy operators and a person living with HIV/AIDS brought a suit in federal court in Tacoma, Wash., and a judge blocked the change. According to the judge"s order, the plaintiffs likely could prove that their best interests had not been sufficiently considered and that the proposal would diminish the quality of Medicaid care in the state. Walgreen had stated that if the rate change occurred, 44 of its 111 stores in the state would no longer be able to fill Medicaid prescriptions. Other pharmacies made similar arguments. The state prepared an argument on behalf of the rate cut, but later decided against it.Along with eliminating the payment reduction, state legislators added a provision that a DSHS analysis is required before rates can be lowered in the next budget, as well as one placing a 2% cap on any future rate cuts. DSHS spokesperson Jim Stevenson said the agency had not started to analyze what would be required to get a rate cut approved, but added, "I think we"re at a stage where we"re going to have to do it soon if we want to get ready for July 1," the start of fiscal year 2010 (AP/Spokane Spokesman-Review, 5/13).
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Kennedy's CLASS Act Would Establish National Long Term Care Insurance

Congress is starting to tackle long-term care through a measure for a national long-term insurance program, according to the New York Times The New Old Age blog. The Times reports: "Generally overlooked in the debate over health care reform... is the C.L.A.S.S. Act, a bill introduced by Senator Edward M. Kennedy, Democrat of Massachusetts, that would establish a national long-term care insurance program. The idea has circulated for years, but now advocates think there"s a real possibility such a plan will be incorporated into whatever health care bill emerges from Congress. The C.L.A.S.S. Act (short for Community Living Assistance Services and Support, if you"re wondering) could transform the way people pay for long-term care. Participants would receive daily benefits - money they could use to pay for home care, adult day programs, assisted living or nursing homes - whether they"re elderly or young and disabled. To date, two of the five Congressional committees working on a health care overhaul have adopted the proposed legislation; the others have yet to vote." The blog post included an interview with Barbara Manard, a health economist with the American Association of Housing and Services for the Aging, who worked with Mr. Kennedy"s staff to draft the legislation. When asked about the basic idea behind the CLASS Act, Manard responded: "It creates a national insurance trust that people can voluntarily participate in. It"s a publicly sponsored insurance plan, to make it as low-cost as possible. You pay a monthly premium. If you become disabled and need assistance with activities of daily living [A.D.L."s] at any age, you can qualify for a daily cash benefit on the order of about $50 to $75 a day, depending on your level of disability. The legislation doesn"t set specific benefits. The Secretary of Health and Human Services will develop the details. It has to be actuarially sound and self-sustaining" (Span, 7/22). This information was reprinted from kaiserhealthnews.org with kind permission from the Henry J. Kaiser Family Foundation. You can view the entire Kaiser Daily Health Policy Report, search the archives and sign up for email delivery at kaiserhealthnews.org. © Henry J. Kaiser Family Foundation. All rights reserved.


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