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PFMA Applauds Passage of Bill Aimed at Reducing Workers’ Compensation Costs

11/12/2014

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The Pennsylvania Food Merchants Association (PFMA) applauds the state legislature’s recent passage of a bill that closes a loophole allowing dramatic mark-ups of physician-dispensed medications to injured workers. HB 1846, which aims to counter rising workers’ compensation costs, was signed into law by Governor Corbett on Octoberr 22.

“This legislation is important to business owners who are seeing increased workers’ compensation costs,” said Alex Baloga, PFMA director of government and public relations. “It creates a fair and stable pricing system for physician dispensing of medication in workers’ compensation claims. We are very pleased with the House and Senate efforts to address this issue.”

HB 1846, sponsored by Representative Marguerite Quinn (R-Bucks), places the same price cap on physicians dispensing medication for injured workers, which pharmacies and other providers must already follow. It would also limit the duration in which physicians can dispense medications, since studies show that patients who were dispensed medication from their prescribing physician tend to stay out of work longer and receive more medication.

In recent years, Pennsylvania saw more physicians partnering with out-of-state drug repackaging companies to dispense medications directly to workers’ compensation patients. Thus exploiting a loophole to avoid the price cap on medications and create spikes in drug pricing, which are charged to the workers’ compensation system.

The bill unanimously passed the state Senate by a vote of 48-0 and received a unanimous concurrence vote in the House of Representatives. PFMA applauds the hard work by Rep. Quinn and state Sen. Lisa Baker (R-Luzerne) to get the bill passed.


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