Pharmacists' lawsuit to be dismissed after Medicaid agency abandons payment cuts

The trade groups representing pharmacists and chain drug stores announced Tuesday that they've reached agreement with federal authorities on a motion to dismiss their lawsuit over Medicaid reimbursements.

The National Association of Chain Drug Stores and the National Community Pharmacists Association sued the Centers for Medicare and Medicaid Services in 2007 over a proposal to lower Medicaid reimbursements to pharmacists for dispensing generic drugs. A court that same year blocked the rule from being implemented, but the lawsuit had been lingering until now.

"Now that all of the issues raised in our ... lawsuit have been resolved," the groups said in a joint statement, "there is nothing left to challenge at this time and we are pleased to have reached agreement with CMS on a motion to dismiss the lawsuit."