Pharmacies Lose Suit Calling CMS Rule Anti-Competitive

Law360, Washington (March 28, 2013, 3:48 PM EDT) -- A North Carolina federal judge on Wednesday tossed a lawsuit by four pharmacies claiming the Centers for Medicare and Medicaid Services' rule that allows drug plans to choose preferred pharmacies is anti-competitive, saying the plaintiffs must first take their complaint to CMS.

Although the independently owned pharmacies alleged there was no administrative mechanism they could use to challenge the "preferred pharmacy" rule, the judge sided with CMS' interpretation of its policies, saying the disputes were “coverage determinations” that should exhaust the agency's process prior to filing...
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