KTIV NewsChannel 4 Sioux City IA: News, Weather and SportsCourt rejects Iowa's Medicaid drug plan
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Associated Press - August 20, 2009 12:24 PM ET
DES MOINES, Iowa (AP) - The 8th U.S. Circuit Courts of Appeals has rejected Iowa's plan to offer brand name drugs to Medicaid patients when it can get them at a cheaper price after government rebates.
Federal officials argued that the state must consider its initial payment to pharmacies when offering the medicines, not including the rebates.
The 8th Circuit noted in Wednesday's ruling that the state asked the court to "second-guess" the federal agency's expertise. However appealing Iowa's plan may be, the court noted it must give weight to federal policy.
The Centers for Medicare and Medicaid have argued that its regulations promote the use of cheaper generic drugs and made the rebate program easier to administer.
Medicaid pays for medical services for poor people.
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