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Stories in the August 5 and August 19 issues of Chain Drug Review on pharmacy operators' reaction to proposed cuts in Massachusetts Medicaid reimbursement rates incorrectly stated that the new rates would be set as the average wholesale price (AWP) minus two percent. While Medicaid programs in most states use a drug's AWP to set rates, Massachusetts is among a handful of states that base their rates on the wholesale acquisition cost (WAC) of a medication.

The AWP of a drug is a nationally published figure, while states using WAC to set reimbursement rates determine that figure on their own. Consequently, those in the industry say, the difference between AWP and WAC can vary significantly.

The Massachusetts proposal would reduce the state's Medicaid reimbursement rates to WAC minus 2%.

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Title Annotation:Government Activity; Massachusetts Medicaid reimbursement rates
Comment:Correction.(Massachusetts Medicaid reimbursement rates )(Government Activity)
Publication:Chain Drug Review
Article Type:Brief Article
Geographic Code:1USA
Date:Sep 2, 2002
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