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Grievance Filed Over Compound Drugs

The State Employee Bargaining Agent Coalition (SEBAC) has filed a grievance contesting the state's right to unilaterally establish guidelines that require state employees to obtain prior authorization for compound medications containing non-FDA approved ingredients.

Follow the link to an FAQ issued by the Comptroller's Office regarding the new guidelines.

The cost of compound drugs under the state health plan has risen dramatically to approximately $24 million in FY 2015 from $800,000 in FY 2012 – owing, in part, to drug manufacturers aggressively marketing compound drugs that lack cost controls because they are not FDA-approved.

Compound drug manufacturers also use expensive non-active filler ingredients to achieve astronomically large markups on their products.

SEBAC understands that the cost of compound drugs needs to be contained but wants to ensure that our members who need them get their medication at an appropriate cost level without excessive bureaucracy and lengthy appeals.

Compound drugs have a proper place in our healthcare system and must remain available to those who need them. However, we have a difference of opinion as to how best to control the costs without disruption to the patients who utilize them – and without circumventing the collective bargaining process.

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