Texas Court Blocks Challenge To Medicaid Drug Pay Rules

Law360, Dallas (June 27, 2013, 4:34 PM ET) -- A Texas appeals court Thursday blocked a co-op of independent pharmacies from challenging a state Medicaid program that shifts prescription drug benefits from directly paying pharmacies to funneling payments through managed care organizations, saying the state health care agency has immunity.

The Austin Court of Appeals said Southwest Pharmacy Solutions Inc., which operates as American Pharmacies, could not show initial steps to implement the coverage shift taken by the Texas Health and Human Services Commission violated the state Administrative Procedure Act in a way that would...
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