Magazine article Drug Topics

Medicaid Cutoff Scare Resolved in Louisiana

Magazine article Drug Topics

Medicaid Cutoff Scare Resolved in Louisiana

Article excerpt

For a couple of days there, it looked as though the state of Louisiana would lose its federal Medicaid funding--which would have been a devastating loss to the state's pharmacists. But the crisis has been resolved, and the federal funds have continued flowing.

The crisis served as a strong reminder, however, that third-party business is far from being just a private business affair.

During the third week of August, the federal government threatened to halt all Medicaid payments to the state because of its legislated stance on abortion. The state would not allow itself to use Medicaid funds to pay for abortions for Medicaid patients who were victims of rape or incest--a stance contrary to the regulations of the federal Medicaid agency.

An appeal by the state to a federal court to avoid the cutoff of funds was denied on July 28, and an appeal to the U.S. Supreme Court failed as of Aug. 17. Without a quick change of heart by Louisiana's state legislature, Medicaid funds could have been cut off by Aug. …

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