For Immediate Release
4/29/08

Contact:

Tom Golden
717-787-1350

Part 1 (running time 56 minutes)
Part 2 (running time 1 hour, 16 minutes)
 

Committee Holds Public Hearing on DPW
 Pharmaceutical Carve-Out Proposal

Harrisburg – The Senate Public Health and Welfare Committee, chaired by Sen. Ted Erickson (R-26), held a public hearing today on the state Department of Public Welfare's proposal to carve pharmaceutical services out of its managed care programs.   

Under the proposed HealthChoices 2008-09 Pharmacy Initiative, responsibility for payment and management of pharmacy services within the Medical Assistance program would be transferred from Managed Care Organizations (MCOs) to DPW.  

DPW Secretary Estelle Richman and representatives of MCOs (Keystone Mercy and AmeriHealth Mercy Health Plan, Gateway Health Plan, and Health Partners) were among those testifying. Secretary Richman said the state could save $95 million annually when the change is fully phased in. MCO officials testified that the savings may be exaggerated and that overall quality of care could be affected.  

"We tried to be balanced, we had both sides of the issue presented," said Erickson. "It appears that those who want to do the carve-out are basing it solely on savings in dollars and not on the holistic care that should be given to individuals. Furthermore, we heard today that even with this carve-out there may be additional costs." 

The senator said the issue needs to be discussed as part of the process for finalizing the state budget by June 30.

Additional Information:
Healthcare

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