Effective August 9, 2012, all pharmaceutical bills submitted for repackaged drugs in Tennessee must include the National Drug Codes (NDCs) of the original drug products used in the repackaging process; and the reimbursement amount for a repackaged drug is limited to the average wholesale price (AWP) of the original drug product. Also, effective October 1, 2013, Tennessee’s legislation requires that no Schedule II or III controlled substances may be dispensed directly by a practitioner or pain management clinic. 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 Tennessee. 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 nearly 20 months of post-reform experience.
Monitoring Tennessee Reforms on Physician Dispensing. Dongchun Wang, Vennela Thumula, and Te-Chun Liu. July 2016. WC-16-51.
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