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Oct
11

Is Florida finally going to fix its (repackaged) drug problem?

This morning’s WorkCompCentral arrived with the welcome news [sub req] that Florida legislators are (once again) going to take up the issue of repackaged drugs and their effect on workers comp.
It’s unbelievable incredible not surprising that the legislature still hasn’t fixed this problem. Perhaps now that NCCI has shown system costs were $62 million higher – a full 2.5% – due to repackaged drugs dispensed by physicians, politicians will do the right thing for Florida’s businesses.

Perhaps.
The latest report from NCCI indicated physician dispensers “charged more than pharmacies for all 15 of the top drugs in Florida…” The differential went from 45% on the low end to 680% for carisoprodol [aka Soma(r)], a drug that a good friend/Medical Director of a very large work comp insurer calls the “worst drug in workers comp”.
For those unfamiliar with the issue, here’s the briefest of summaries.
– Florida’s pharmacy fee schedule is set at 100% of AWP plus a $4.18 dispensing fee for both generics and brand drugs. But AWP is based on the drug’s NDC number, a code that can be created by the wholesaler/repackager. Thus, if a company wants to buy a million 800 mg ibuprofen tablets and repackage them into lots of 27, it can create it’s own NDC, and thus set its own AWP.
That’s how repackagers/physician dispensers make their millions.
– Florida tried to fix this a while ago, but then-Governor Charlie Crist vetoed a bill passed unanimously by both Houses that would have tied the repackaged drug’s price to that of the original drug’s ‘underlying’ NDC, thereby eliminating the huge markups.
Turns out Crist got a very large campaign donation from a very large physician dispensing/technology company – Automated Healthcare Solutions of Miramar Florida.
– then, under new Governor Rick Scott (!!) the legislature scheduled a vote on overturning Crist’s veto, a vote that – given the previous unanimous passage of the physician dispensing fix – seemed like a mere formality.
Alas, physician dispensing companies pulled out their wallets and donated $1 million to political spending committees controlled by incoming legislative leaders Sen. Mike Haridopolos, R-Merritt Island, and Rep. Dean Cannon, R-Winter Park. And, the scheduled vote…never happened.
– now, NCCI and WCRI have both published reports conclusively showing physician dispensed medications increase the cost of doing business in Florida.
Now you’re up to date. Disgusted; faith in politicians shattered; amazed by the hypocrisy of ostensibly pro-business elected officials, but hey, at least you’re current.
Here’s hoping Florida does the right thing – but don’t bet on it.


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Joe Paduda is the principal of Health Strategy Associates

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