Three pharmacy associations are suing Washington state to stop what they call a "substantively and procedurally flawed" rule that would pay pharmacies below the actual cost to dispense Medicaid prescriptions.

At issue is a Washington State Health Care Authority rule that changes how the agency determines pharmacies' cost of acquiring pharmaceuticals, thus reducing reimbursement to pharmacies for medications dispensed to Medicaid patients, the associations said in a joint statement.

The groups argue the state rule contradicts a federal rule requiring reimbursement adjustments to account for another aspect of pharmacies' costs, called the "professional dispensing fee."

The National Association of Chain Drug Stores, Washington State Pharmacy Association and National Community Pharmacists Association are asking the Superior Court of Washington, Thurston County to suspend the state rule.

"The state's new rule is both substantively and procedurally flawed," the groups said in the lawsuit. "First, it should be stayed because it constitutes arbitrary and capricious agency action that violates federal law. Second, it should be stayed because the state failed to follow the clear procedural directives that apply when amending a rule."

Washington state officials had not responded to the lawsuit as of Friday morning. http://bit.ly/2mVSHh2

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