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Ten Percent Pharmacy Payment Injunction

Updated July 17, 2008

On July 1, 2008, the Department of Health Care Services (DHCS) implemented a 10 percent payment reduction to providers for various services, including pharmacy, as required by state law. On July 11, 2008, the U.S Ninth Circuit Court of Appeals issued an interim injunction against the reduction in the payments for prescription drugs for dates of service from July 11, 2008, until August 11, 2008. On July 16, 2008, the court lifted its injunction against the 10 percent payment reduction it issued five days earlier. Therefore, DHCS will continue to impose the 10 percent reduction in payments for prescription drugs as required by state law.