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AAC and CoD Campaign
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We won the fight against NYS DOH AAC!

Background: On December 3, 2013 the NYS Department of Health (DOH) released statistical analysis and survey results for the New York Medicaid fee for service Average Acquisition Cost (AAC) and Cost of Dispensing (COD).   DOH officials announced:

  • New dispensing fees
  • AAC for top 100 brands
  • AAC for top 100 generics

These results were not logical. The methodologies for obtaining these results were flawed. If the plan that NYS DOH proposes was implemented, the outcome for community pharmacy would have been detrimental.   This would have effected all pharmacists, even those who do not accept Medicaid FFS. The real danger was that this becomes a benchmark for other payers.  


On Wednesday, January 15, 2014 a joint effort between PSSNY, NYCPS and the Indo-American Pharmacists Society brought together more than 500 pharmacists to become aware of the results and to understand the action that had be taken. We launched a grassroots campaign that resulted in thousands of letters emailed and faxed to NYS legislators from across the state. This was just the beginning.
  • PSSNY established an unprecedented coalition with the NYS Chain Association to fight the implementation of the DOH recommended AAC and COD 
  • PSSNY launched a patient advocacy campaign that led to more than 1,000 patient letters and petitions being sent to legislators demanding that their community pharmacy be treated fairly. This message was delivered in English and in Spanish. 
  • PSSNY alerted pharmacists across the state to the issue and the ongoing grassroots increased the correspondence to legislators to more than 13,000 total messages being sent to Albany – protesting the unfair treatment of pharmacy. (See letters below)
  • PSSNY leaders, along with NYS Chain Association leaders, testified before the joint budget committee, participated in media interviews and led numerous meetings with the officials of the department of health. 
  • On March 4, 2014 – Pharmacy Owners Lobby Day brought more than 250 pharmacy owners together to meet with legislators and get a commitment of support. 
  • In the final hours of the budget decisions being made – pharmacists from across the state and across disciplines came together united sending 6,516 messages to legislators and the Governor to remove DOH’s authority to implement the AAC/COD policy


On Saturday, March 29, 2014 we were notified by our lobbyist that WE WON! The NYS Legislature removed the authority of DOH to implement new methodologies for reimbursement AND they were directed to consult with all interested stakeholders in the development of a new methodology for reimbursement to pharmacies.


The efforts of the dedicated volunteers leading the pharmacy initiative in NY saved community pharmacy from being cut $80 Million, and earned a solid seat at the decision making table for future changes. This effort was accomplished by members of PSSNY that are dedicated to serving the profession.  If you are not a PSSNY member supporting pharmacy, or you know a pharmacist, or non-pharmacists pharmacy owner that is not a PSSNY member you MUST join today to be sure we remain solid for the future.

While this battle was won – we are still fighting the war!

PSSNY, 7 Executive Centre Drive, Suite 1, Albany, NY 12203 * 518-869-6595 *