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Federal Judge Blocks State Decision On Pharmacy Fees

Last updated on Tuesday, July 12, 2011

(UNDATED) - The Indiana Pharmacists Alliance is applauding a move by a federal judge against the state of Indiana.

U.S. District Court Judge Tanya Walton Pratt has temporarily blocked the state from imposing a 38-percent cut in fees it pays pharmacies for dispensing Medicaid prescriptions.

The judge ruled the Indiana Family and Social Services Administration acted prematurely when it dropped the fee from $4.90 to $3.00 on July 1st. The cut came before federal government approval.

The Indiana Pharmacists Alliance argued the reduction would've caused hundreds of smaller, independent pharmacies across the state to lose big money and possibly go out of business.

The judge's order is merely temporary. The state has maintained that the cuts were needed to help FSSA remain on budget.

A preliminary injunction hearing is set for Aug. 24 in U.S. District Court in Indianapolis.

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