Cuts May Curb Generic Use: APhA

Published Online: Wednesday, February 1, 2006

The new pharmacist reimbursement formula established under the Medicaid program cuts passed by Congress late last year may result in reduced generic substitution by the nation's pharmacies, officials at the American Pharmacists Association (APhA) warned.

The controversial budget cuts "will likely have a disastrous impact on the profession's ability to provide necessary care to Medicaid patients,"APhA said in response to the legislation.

At the same time, however, the association suggested that the cutback may prove to be counterproductive by discouraging pharmacists from dispensing more cost-effective generic medicines. According to APhA, "the new payment formula, through an absence of incentives, could actually discourage the dispensing of generic drugs, a significant source of Medicaid savings."

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