Capitol Chatter: Feb. 17

Workers comp loophole closing in Legislature
Closing a costly loophole in the state's workers compensation law appears to be heading toward approval in the Legislature.

The loophole allows physicians to dispense repackaged drugs from their offices and charge employers prices that go far beyond the statutory reimbursement for the same pharmaceuticals that are dispensed at pharmacies. The relabeled prescription drugs are sold at rates up to 679% more than what a pharmacy is allowed to charge under workers compensation.

The cost of the loophole falls back squarely on businesses, who could see their workers comp premiums go up 9% this year. The increase would drop to about 6.5% if the drug repackaging loophole is closed, according to backers, who say the problem is costing workers comp about $62 million a year.