Miss. High Court: Medicaid Erred On Pharmacy Rule

JACKSON, Miss. (AP) — Mississippi Medicaid officials should have asked the Legislature for approval before tinkering with a law that would change reimbursements for pharmacists, the state Supreme Court has ruled.

The Supreme Court on Thursday upheld a chancery judge's ruling that the Division of Medicaid had no authority to change how pharmacists were paid to fill prescriptions for people enrolled in the program. Medicaid is a federal-state health insurance program for the needy, aged, blind and disabled and for low-income families with children.

The pharmacies sued Medicaid in 2008 shortly after the program sought to implement the new method of payments. The pharmacies said state law gives the Legislature sole authority to change the reimbursement plan unless there was a federal mandate.

Under Medicaid, states reimburse pharmacies for the cost of medicine provided to patients on the program. In the fiscal year that ended June 30, Mississippi spent $328 million on its Medicaid pharmacy program.

Justice Randy Pierce, writing Thursday for the Supreme Court, said while the courts usually bow to agencies on issues or rules and regulations, Medicaid officials acted outside their authority.