Rhode Island plan to collect prescription drug copayments from some Medicaid beneficiaries requires change to State Law

Oct 5 2006

Superior Court Judge Stephen Fortunato on Tuesday ruled that Rhode Island's plan to begin collecting prescription drug copayments from about 14,000 Medicaid beneficiaries requires a revision of state law, the Providence Journal reports (Freyer, Providence Journal, 10/4).

The state Department of Human Services in July issued regulations requiring some Medicaid beneficiaries to contribute copays of $1 for generic prescription drugs and $3 for brand-name drugs.

Attorneys from Rhode Island Legal Services filed a lawsuit alleging that the state did not have the authority to impose copays without Legislative action.

The state legislature authorized the copays as part of the state budget for the current fiscal year, but plaintiffs' attorneys argued that budget approval is not enough to authorize the copays and that a specific statutory change is required (Kaiser Daily Health Policy Report, 9/25).

DHS Director Ronald Lebel said he would discuss appealing the decision with the department's lawyers.

Lebel added that when the Assembly returns in January 2007, he will ask for a change in the Medicaid statute and for funding in the supplemental budget to cover the $60,000 per month the copay was expected to generate (Freyer, Providence Journal, 10/4).