Both the Assembly and the Senate reacted this week to the governor’s budget proposal that would impose a tax on opioids sold in the state. Although characterized as a tax on manufacturers, the proposal would in many cases be a tax on pharmacy since it would require that the establishment that makes the first sale of the product in New York to pay the tax with no ability to pass it on. Given that pharmacies often make the first sale, this proposal would greatly impact pharmacies. Fortunately, while the Assembly’s budget proposal does retain the governor’s opioid tax, it specifies that for calculating the first sale for tax purposes, the state cannot include any sales to pharmacies. The Senate budget proposal totally eliminates the tax proposal. This issue will now go to a conference of the Assembly, Senate and the governor’s office to be resolved before the Sunday, April 1 budget deadline.
Also in New York…After a year of discussions with Medicaid staff, numerous meetings with legislative leadership and key Administration staff, as part of the New York State budget proposal, the Governor recommended an eight-cent increase in the Medicaid fee-for-service professional dispensing fee raising the fee from $10.00 to $10.08. This week, both the Assembly and the Senate concurred with the increase.
For more information, please contact NACDS’ Ben Pearlman at 617-515-2603.