Health Plan Doesn't Need Cost Study For Drug Prices: Panel

Law360, Los Angeles (March 3, 2014, 4:07 PM ET) -- A California appeals panel on Friday rejected pharmacy owners’ attempts to force Partnership HealthPlan of California to increase payments for drug purchases, ruling that health plans do not need to be reasonably related to costs or based on cost studies.

Justice Kathleen Banke, writing for a unanimous panel, held that the plaintiffs’ claims were based on a Ninth Circuit decision that was repudiated by the circuit last year. The original opinion found that Medicaid rates had to be “reasonably related” to health care provider costs and...
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