Article ID: 7ccf0ae5c9344567454923c9292f6c06aacc36731e83e3a93ed845d3d928323c
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Pa. high court limits comp anti-referral law in pharmacy dispute - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Pa. high court limits comp anti-referral law in pharmacy dispute by Louise Esola Workers Comp Coverage Jun 17, 2026 The Pennsylvania Supreme Court ruled Tuesday that the state workers compensation law’s anti-referral provision does not apply to prescription drugs or pharmaceutical services provided by a pharmacy in which a treating physician has a financial interest. In 700 Pharmacy v. Bureau of Workers’ Compensation Fee Review Hearing Office (State Workers’ Insurance Fund), the high court reversed a Commonwealth Court ruling that had upheld the denial of 700 Pharmacy’s fee review applications. The consolidated cases involved injured workers whose treating physicians prescribed medications that were filled by 700 Pharmacy. State Workers’ Insurance Fund refused to pay for the prescriptions, arguing they resulted from unlawful self-referrals because the doctors had a financial interest in the pharmacy. A workers compensation hearing officer and the Commonwealth Court agreed, finding that prescription drugs fell within the anti-referral provision’s reference to “goods or services.” The state Supreme Court reversed, holding that the provision’s plain language limits prohibited self-referrals to eight listed categories: laboratory, physical therapy, rehabilitation, chiropractic, radiation oncology, psychometric, home infusion therapy and diagnostic imaging goods or services. The court said prescription drugs and pharmaceutical services were not included in that list. The court also noted that lawmakers addressed prescription drug reimbursement elsewhere in the workers compensation statute but did not include similar language in the anti-referral provision. Two justices dissented, arguing that the phrase “goods or services” should be read broadly to include prescription drugs and pharmacy services and that the majority’s interpretation undermines the provision’s cost-containment purpose. The court remanded the cases for further proceedings. 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