After Sept. 20, 2018, any provider who has not yet been reimbursed for a 2016 overpaid pharmacy provider tax can apply for a refund, under Act No. 2018-95.
“They will have to petition the Alabama Revenue Department to get the refund,” said Rep. Elaine Beech, D-Chatom, the House sponsor of the bill by Sen. Paul Bussman, R-Cullman. Their legislation became law on Feb. 14, 2018.
The few unreimbursed pharmacy providers have until Oct. 1, 2020, to petition for a refund. Most of those who haven’t been reimbursed closed or sold their pharmacies and have no way to receive a credit, the sponsors said.
In the summer of 2016, a 15-cent increase in the pharmacy provider tax paid by pharmacies and a related increase in the dispensing fee paid by Medicaid to pharmacies were voided after the Centers for Medicare and Medicaid Services rejected the scheme to provide more Medicaid funding.
Pharmacies paid the additional 15-cent, per-prescription tax from Oct. 1, 2015, until July 13, 2016. The state has been paying $11.2 million back to pharmacies as a credit on their monthly tax remittance. According to the bills’ fiscal note, about $300,000 remained in unused credits as of Oct. 1 of this year. Credits will continue to be made through Sept. 20, then any unreimbursed providers will need to apply for a refund.
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