LTC Pharmacy News State News  April 2025 I have been publishing the LTC Pharmacy News for several years and have pretty much stuck with LTC pharmacy goings-on in Washington, occasionally wandering into news from the states. However, having begun my health policy career in state capitals, I thought it might be helpful to turn our attention to what the late Supreme Court Associate Justice Louis Brandeis called "The Laboratories of Democracy". The importance of state governments to LTC pharmacy is difficult to overstate. States determine who can own a pharmacy, who is allowed to practice pharmacy, and what those who practice pharmacy can legally do. Pretty big deal. Most state legislators are truly citizen legislators. They have regular jobs in the community and live with the laws they pass. As a pharmacist, or pharmacy owner, you can make a big difference by paying attention to what's going on in your state. As this newsletter evolves, I hope to focus on the healthcare challenges these folks work on and the role you can play in helping them succeed. Thanks for reading. Paul Breaking News: Omnicare/CVS Found Guilty in Medicare False Claim Violations The US Attorney for the Southern District of New York announced that a jury had found Omnicare/CVS of dispensing drugs without a valid prescription. The total fine to the company could exceed $400 million. Subscribe to LTC Pharmacy News! If you received this issue of LTC Pharmacy News from a friend, be certain to get your own free subscription. Easy! Just click the button below and make certain you continue to get all the LTC Pharmacy News as soon as it's published. Subscribe Now! State Highlights What's Happening in the States Some States Face Major Funding Issues if Medicaid Cuts Come South Dakota, Oklahoma and Missouri are some of the states that have included expanded Medicaid coverage into their state constitutions. So, if Republicans cut back on funding expansion populations these states could be under pressure to pick up the slack (more). More States Allow Cameras in LTC Settings Fears of resident abuse and neglect have prompted relatives of nursing facilities and assisted living facilities to install video cameras in the rooms of their loved ones. While facility administrators often object, states have waded in and are now requiring LTC administrators to allow the practice...more California Returns Medical Parolees to Prison California, like most other states, has a law allowing prisoners with debilitating medical conditions to be "paroled" to local care facilities. The state has now paused the parole program in an effort to save money, claiming that prisons now have better ability to care for these inmates...more. NY Governor Scrambles Ahead of Federal Spending Bill NY State spends $101 billion on Medicaid, $34 billion of which come from state taxpayers. If Congress follows through on its plan to cut 10-year Medicaid spending by $880 billion. the governor's ambitious plan for Medicaid is at risk. Governor Kathy Hochul (D) is already unpopular, and if the state is forced to cut back on Medicaid spending, her election race next year is likely to suffer. (More) California's Medi-Cal Program Struggles With Proposed Budget Cuts Medi-Cal, California's Medicaid program, offers a rich menu of services that go well beyond federal mandatory minimums. As a result, the proposed budget cuts under consideration by the Trump Administration and the Republican Congress would, if enacted, create a significant challenge to the $174 billion program (more) Medicaid Provider Tax Loophole May be Closing One of the more creative ways states attract federal matching funds is through "provider taxes", where the state levies a tax on healthcare providers (frequently hospitals and nursing homes) and increases their reimbursement in return. The artificial increase in expenditures attracts increased federal matching funds. A proposed rule restricting the current use of provider taxes is reportedly under review by the Administration. (More) Medicaid Coverage Not Mandatory for GLP-1 Drugs: Some States Go Ahead The Biden Administration had proposed requiring both Medicare and Medicaid to cover anti-obesity GLP-1 drugs. The Trump Administration canceled the plan, but will allow states to cover these drugs if they so choose, despite federal law that prohibits the coverage of weight-loss drugs. So far, 14 states have decided to move ahead with coverage (More) Select Legislation Pennsylvania SB 190 would create a Pharmaceutical Transparency Review Board, with powers to to review high cost prescription drug products and develop recommendations for addressing affordability burdens faced by residents, State and local government agencies, commercial health plans, health care providers, employers, pharmacies licensed in this Commonwealth and other stakeholders. Currently in Senate Banking and Insurance Committee SB 301 would require the disclosure of prescription price and alternative drugs at point of sale. Currently in Senate Banking and Insurance Committee HB 1249 Would establish a drug shortage reporting system. Currently in House Health Committee California AB 1503 proposes to amend pharmacy practice law. See summary. Currently in Assembly Committee on Business and Professions AB 910 proposes that 100 percent of rebates, fees, and discounts be remitted to the health service plan. Prohibits spread pricing. Approved by Assembly Health Committee and forwarded to Appropriations Committee. Hearing scheduled 4/29. New York SB 5464 Amends provisions governing reimbursement practices of pharmacy benefit managers to ensure that pharmacies are not reimbursed an amount less than the cost of procuring the drugs. AB 5994 Directs the commissioner of health, in consultation with the commissioner of education, the commissioner of mental health, and the state board of pharmacy, to promulgate and implement rules and regulations authorizing the use of automated patient dispensing and storage systems for distribution of prescription and non-prescription drugs and medical devices at pharmacies. Tracking Page Coming I am working on a state legislative tracking page to keep us up-to-date on what's happening in state legislatures. Hope to have it soon.