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Drug store and pharmacy groups sue over Medicaid reimbursement

BY CSA STAFF

Dover, Del. Officials for the state of Delaware said Thursday they will not be intimidated by a federal lawsuit challenging a reduction in Medicaid reimbursements to Delaware pharmacies.

The lawsuit was filed this week in federal district court in Wilmington, Del., by the National Association of Chain Drug Stores and the National Community Pharmacists Association.

The two trade groups are seeking a preliminary injunction to halt the 2% reduction, which took effect April 1.

The lawsuit was filed just days after Walgreen Co. said its 66 stores serving Delaware patients would drop out of the Medicaid program because of the state’s decision to increase the discount applied to the average wholesale price for prescription drugs from 14% to 16%.

Delaware Gov. Jack Markell said the lawsuit would not intimidate his administration into paying Walgreens higher reimbursement rates.

“If these are negotiating tactics, they are not good ones,” Markell said in a prepared statement. “We are always open to conversation, but we will not be bullied, especially when we are asking so many individuals and organizations in Delaware to share in the sacrifices necessary to close an $800 million budget gap.”

The lawsuit names Markell and state health and social services secretary Rita Landgraf as defendants, along with the Department of Health and Social Services.

In their complaint, the trade groups claim the reimbursement reduction violates both state and federal law in that it will reduce the quality of care for Medicaid patients and fails to comply with the care and access requirements of the Social Security Act.

The plaintiffs also claim state officials failed to get approval from federal Medicaid officials before implementing the change, and violated their own administrative procedures.

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It’s a man’s world at Walmart

BY CSA STAFF

BENTONVILLE, Ark. Walmart is using the man cave concept as part of its Father’s Day promotion. Starting June 14, the company is offering on Blu-Ray players and movies, video game bundles and tools, among other products geared at providing dad with all he needs for his own space in the house or garage.

Also starting this June 14, Walmart will be the first retailer next to Dell to introduce the new, smart-looking Dell Studio One(TM) 19 touch screen desktop – one of the newest additions to a re-designed Walmart electronics department.

Walmart further gets into the man cave promotion with an online poll asking visitors to Walmart.com to vote on where the most popular man caves at home reside.

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A&P raises $320K for community food banks

BY CSA STAFF

MONTVALE, N.J. The Great Atlantic & Pacific Tea Company announced that it raised $320,000 through its “Check Out Hunger” campaign, which helps fight hunger and poverty by benefiting community food banks throughout the Northeast.

“We are extremely proud that so many of our customers contributed to the fight against hunger and poverty through our ‘Check Out Hunger’ campaign,” said Jennifer MacLeod, SVP marketing and communications,  A&P.  “A&P is truly dedicated to this cause, and the support from our customers and employees has been tremendous.”

The annual “Check Out Hunger” campaign begins in late September and runs though the end of January at all A&P, SuperFresh, Waldbaum’s, Pathmark and The Food Emporium stores.  During check-out, shoppers are invited to contribute to “Check Out Hunger” by making $1, $3 and $5 donations.

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