Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 14

Starko was one of many pharmacists providing prescription drugs to Medicare patients. New Mexico law provided that pharmacists would be reimbursed "the wholesale cost of the lesser expensive therapeutic equivalent drug generally available in New Mexico plus a reasonable dispensing fee of at least three dollars [and] sixty-five cents." As time passed, New Mexico, like virtually every other state, transitioned to a managed care program for pharmacy services. Starko claimed that the managed care program paid significantly less than the statutory minimum. Was the right to receive $3.65 per prescription property of the pharmacists?