You have to make a profit
to stay in business.
Pretty simple concept, right?
Well, guess what? When the government gets involved, they apparently expect you to overlook this simple concept.
Here's the reimbursement information for a recent prescription at my pharmacy.
What this shows is that this tube of ointment cost our pharmacy $378.94. I have no doubt that this involves some sort of mistake with The Authorities at Goofmart management. That's way too expensive and a story for another day. Let's say it should only cost us $15. Even at that, our reimbursement was so low that we'd be losing money.
Here's the best part. Honey Badger (MEDICAID) don't care! It doesn't matter what your profit or loss is on a medication, BY LAW you're supposed to fill it. So there's one of two things going on here.
1. You are supposed to eat the loss and live with it, compromising basic business principles and putting your pharmacy business at risk.
2. You're supposed to make it up by charging your other patients NOT ON MEDICAID more to make up for it. In that case it is a "hidden" tax.
Either way, that's pretty damn creepy.
Another recent post about Medicaid is found here: LINK