PAC Update

By DREW OESTREICH

The Pharmacy Agent Corporation (PAC) began handling members’ MoHealthNet payments in September of 2008 to act as an agent to the State of Missouri for the Missouri Pharmacy Provider Tax. While the process and methodology are unique, the benefits to you and the State are many.

The purpose of the MO HealthNet Division is to purchase and monitor health care services for low income and vulnerable citizens of the State of Missouri. The agency assures quality health care through development of service delivery systems, standards setting and enforcement, and education of providers and participants. MO HealthNet is fiscally accountable for maximum and appropriate utilization of resources.

Through the enhanced dispensing fee and preferred generic fee the state is able to take advantage of additional general revenue “look a-like” dollars. They reinvest these dollars back into the Medicaid pharmacy program. This allows for Missouri Medicaid to reimburse pharmacies at competitive levels. It also allows Missouri to fund additional opportunities including MTM. The State allows the pharmacies to keep approximately 2% of the taxed amount as a handling fee.

As a protection for you the provider tax statute has a poison pill clause. This means that if the state ever tried to cut your base dispensing fee the provider tax would no longer exist. If you have any questions about PAC feel free to contact me at drew@morx.com.

Tweet with @TheMPA