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Health and Human Services Budgets Released

Both the House, Senate, and Governor's proposed Health and Human Services (HHS) budgets have been released. The House HHS budget subcommittee met Thursday to discuss their version. The Senate version has advanced out of committee.


Both the House, Senate, and Governor's proposed Health and Human Services (HHS) budgets have been released. The House HHS budget subcommittee met Thursday to discuss their version. The Senate version has advanced out of committee. 

The HHS budget impacts pharmacy by establishing how pharmacy is reimbursed under Iowa's Medicaid program. Since 2012, Iowa Medicaid has paid for prescription drugs using a transparent and data-based method: average AAC (actual acquisition cost) + DF (dispensing fee). Both AAC and the DF are established by survey responses from Iowa pharmacy providers. The DF is updated every two years and since 2012 has fluctuated between $10.02 - $11.73. In 2020, the cost of dispensing was calculated at $10.38.?  

While the survey was completed last year, IME continues to insist legislative action is needed before implementation of the new fee can occur. IPA is working to ensure the new fee is implemented in full through whatever version of the HHS budget is passed this year. IPA will be sending out an Advocacy Alert today asking pharmacists to encourage their legislators to support a fair and transparent dispensing fee for pharmacies.  

Each week throughout the session, we will keep you updated in the +1 section of the TOP 5. IPA provides a bill tracker, listing all bills IPA is following on behalf of our members.  

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