Medicare, Medicaid Sued Over Preferred Pharmacy Rule

Law360, New York (July 11, 2011, 5:21 PM EDT) -- An independent pharmacy cooperative sued the Centers for Medicare and Medicaid Services on Monday in Texas federal court, claiming the agency's rule setting up preferred pharmacies is anti-competitive and violates the Medicare Prescription Drug, Improvement and Modernization Act.

Southwest Pharmacy Solutions Inc., which does business as American Pharmacies, said in its complaint that the regulation allowing preferred pharmacy networks violates the so-called any willing pharmacy requirement of the statute requiring Medicare prescription drug plans to allow all qualifying pharmacies to participate.

"Such a network-within-a-network model plainly...
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