Frequently Asked Questions

 
How will drugs be grouped to determine an Average Acquisition Cost (AAC) for reimbursement?
Why might Louisiana Medicaid request information about my pharmacy’s drug purchases?
Why should I send information about my pharmacy’s drug purchases to Louisiana Medicaid, if requested to do so?
What are the acceptable methods to transmit my drug purchase information?
What will Louisiana Medicaid do with drug purchase information it receives from me?
Why might my pharmacy be selected to provide drug purchase information?
How often might I be asked to provide drug purchase information?
For what time period would my drug purchase information be requested?
How will the AAC rates be updated?  How do I report concerns about product prices or product availability?
What if my cost is higher than the AAC reimbursement rate?
How often will the AAC rate schedule on the Myers and Stauffer Louisiana Pharmacy Web site be updated?
Whom may I contact with questions regarding this initiative?
How will drugs be grouped to determine an Average Acquisition Cost (AAC) for reimbursement?
Average Acquisition Cost (AAC) reimbursement is based on the premise that chemically equivalent drug products with the same strength and dosage form should be reimbursed similarly.  AAC rates are designed to maximize the cost-effectiveness of pharmacy services by setting reimbursement amounts for therapeutically equivalent drug products at the same price, based on the average cost of the products.  Brand and generic formulations will have a separate AAC rate.
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Why might Louisiana Medicaid request information about my pharmacy’s drug purchases?
In order to maintain an AAC program with reimbursement that reflects current pharmaceutical market conditions, the AAC rates are based on the actual acquisition costs of Medicaid pharmacy providers.  The calculated rates are designed to reimburse ingredient costs at a rate that is reflective of the average costs that Louisiana pharmacy providers are experiencing.
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Why should I send information about my pharmacy’s drug purchases to Louisiana Medicaid, if requested to do so?
The AAC rates are based on Medicaid pharmacy providers’ actual experiences purchasing selected drug products.  Providers who receive requests for drug purchase information are strongly encouraged by the State to provide the requested information to ensure that the established AAC rates fully consider providers’ cost experience in the marketplace.
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What are the acceptable methods to transmit my drug purchase information?
For drug purchases made during the identified time period requested by LDH, providers can simply retrieve the invoices reflecting their purchases, photocopy the records, and then mail the copies to Myers and Stauffer.  A provider can also provide this data via email in an electronic format.  Electronic files can be accepted in Excel, pdf and text file format.  Informational letters that accompany the survey request will have more detailed submission information.
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What will Louisiana Medicaid do with drug purchase information it receives from me?
LDH will use drug purchase information submitted by pharmacies for the purpose of establishing, evaluating, maintaining, and updating AAC rates.  LDH has contracted with the firm of Myers and Stauffer to assist in developing and maintaining the AAC program.  Pharmacies are encouraged to submit copies of purchase information, rather than originals as information submitted will not be returned.
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Why might my pharmacy be selected to provide drug purchase information?
All pharmacy providers enrolled in the Louisiana Medicaid program are eligible for random selection to provide drug purchase information.
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How often might I be asked to provide drug purchase information?
All pharmacy providers enrolled in the Louisiana Medicaid program are eligible for selection to provide drug purchase information.  A random sample of pharmacies are selected to participate in acquisition cost studies on a semi-annual basis.
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For what time period would my drug purchase information be requested?
All pharmacy providers enrolled in the Louisiana Medicaid program are eligible for selection to provide drug purchase information.  When a request is received for drug purchase information, the time frame of the data requested will be for the most recent 30 day period.  If that drug purchase information for the most recent 30 day period is not readily available, then the next most recent 30 day period will be acceptable.
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How will the AAC rates be updated?  How do I report concerns about product prices or product availability?
Baseline AAC rates will be calculated twice a year based on invoice costs submitted by Louisiana Medicaid pharmacies.  To respond to changes in the marketplace, AAC rates will also be reviewed weekly for published pricing changes and daily when inquiries are received through the pharmacy help desk.
When contacting the pharmacy help desk, you will be asked to provide information regarding your request.  Information should include, but not be limited to drug purchase summaries, invoices, remittance advices, and other such documentation.  In the absence of sufficient information to assess concerns about AAC rates or other aspects of the AAC program, provider requests cannot be fully considered.  Providers initiating requests for review of AAC rates or other issues may be contacted to request supporting documentation or other information.
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What if my cost is higher than the AAC reimbursement rate?
AACs are based on the average acquisition cost of pharmacy providers and therefore may sometimes be below the costs experienced by individual providers.  Adjustments will be made to the AAC rate when the overall average has increased.  If your acquisition costs have increased, you may contact Myers and Stauffer’s Louisiana pharmacy help desk at 800-591-1183 to report your concerns and request a rate review.
AAC rates will be adjusted when the overall average cost of a drug has increased.  AAC rates will not be eligible for adjustment due to an individual provider’s inability to purchase the drug below the AAC if the overall average has not changed.
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How often will the AAC rate schedule on the Myers and Stauffer Louisiana Pharmacy Web site be updated?
The AAC rate listing will be updated weekly.  The following link will take you directly to the rate listing.
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Whom may I contact with questions regarding this initiative?
We welcome provider's questions, comments, and input regarding the AAC program.  To share general comments or to request information regarding the AAC rates, you may contact the Myers and Stauffer Pharmacy Unit.
Providers are encouraged to contact the Myers and Stauffer Pharmacy Unit to discuss:
    ·    Changes in acquisition cost of a drug
    ·    Changes in product availability
    ·    Questions regarding AAC rates
    ·    Questions concerning drugs on the AAC rate list
    ·    How to obtain a copy of the AAC rate list
    ·    Other questions, comments, or concerns
Please contact the Louisiana Department of Health for policy questions.
Contact Myers and Stauffer by Telephone, Fax, Mail, or email  
Parties who wish to comment or discuss questions, comments, or concerns about the AAC program may contact Myers and Stauffer weekdays between 8:00 A.M. and 5:00 P.M. (Central Time) as follows:
Myers and Stauffer LC
Pharmacy Unit
9265 Counselors Row, Suite 100
Indianapolis, Indiana 46240
Phone:  800-591-1183
Fax:  317-571-8481
Email:  lapharmacy@mslc.com
Contact Myers and Stauffer Online
Comments or questions may be forwarded to Myers and Stauffer via the Internet at any time by visiting http://www.mslc.com/Louisiana/.  This Internet site has been developed exclusively to support the Louisiana Medicaid AAC program.  On the site providers will find the AAC rate schedule and updates, news and information, and online forms to send questions and comments to Myers and Stauffer.
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FAQs maintained by Myers and Stauffer, LC Pharmacy Services.

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