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Coal for Drug repackagers/Physician dispensers…

Today’s WorkCompCentral arrived with the welcome news [subscription required] that South Carolina’s Workers Comp Commission has capped the price on repackaged drugs at the price set by the underlying manufacturer.
This is good news indeed, and a well-deserved helping of coal for drug repackagers and physician dispensing companies who add no value while sucking money out of the system.
This follows similar action earlier this year in Georgia, and should have a significant impact on employers’ costs in the Palmetto State. According to NCCI, physician dispensed drugs accounted for about 27% of all drug costs in SC – but that was back in 2009. It’s highly likely they’re up well over 30% by now.
Other states that have put caps on physician dispensed drugs or otherwise limited the practice include California, New York, Georgia, Texas, and Massachusetts. Connecticut is looking at the issue, as is Maryland.
The big problem continues to be Florida, where physician dispensed drugs now account for over half of all drug costs – and price levels continue to head for the stratosphere. Sources indicate legislation designed to limit price gouging will pass the House, but it’s up in the air in the Senate.
For more info on exactly how much cost these companies add to the system, click here.
What does this mean for you?
Lower costs and improved patient safety in South Carolina is great news indeed!

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Joe Paduda is the principal of Health Strategy Associates




A national consulting firm specializing in managed care for workers’ compensation, group health and auto, and health care cost containment. We serve insurers, employers and health care providers.



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