Effective December 19, 2011, South Carolina changed the reimbursement rules for physician-dispensed drugs by capping prices paid for physician-dispensed repackaged drugs at the manufacturer’s average wholesale price (AWP) of the original drug product, plus a $5.00 dispensing fee. The rule change in South Carolina was aimed at reducing the prices paid for physician-dispensed prescriptions while physicians continued to be able to dispense drugs they prescribe to their patients. As of June 2016, 20 states have made changes to rules governing physician dispensing.
As part of a series of WCRI studies that examine the impact of physician dispensing reforms, this report presents the results of the price-focused reform on the frequency and costs of physician dispensing in South Carolina. The analysis is based on detailed transaction data for physician- and pharmacy-dispensed prescriptions filled by injured workers up through the first quarter of 2014 that capture 27 months of post-reform experience.
Impact of South Carolina Reforms on Physician Dispensing. Dongchun Wang, Vennela Thumula, and Te-Chun Liu. July 2016. WC-16-50.
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