Pennsylvania Preferred Drug List Requirement Effective Jan. 1

Pennsylvania Preferred Drug List Requirement Effective Jan. 1

The Department of Human Services (DHS) implemented a statewide Preferred Drug List (PDL) effective on Jan. 1, 2020. The PDL will be utilized by the fee-for-service program and all Medical Assistance (MA) managed care organizations (MCOs) in Pennsylvania, including those in the HealthChoices and the Community HealthChoices programs. The state believes the PDL will result in administrative simplification for providers and decrease healthcare costs in the long term. DHS estimates the new approach will save the state $85 million a year. DHS estimates that approximately 150,000 Medicaid recipients will have to change their prescription medications as a result of the implementation of the statewide PDL. Read more.


New Federal Overtime Rule Effective Jan. 1

The U.S. Department of Labor (DOL)’s changes to the overtime provisions of the Fair Labor Standards Act (FLSA) went into effect on Jan. 1. This rule updates the minimum salary thresholds (previously set in 2004) necessary to exempt executive, administrative, or professional employees from the FLSA’s minimum wage and overtime pay requirements. The rule does not, however, make any changes to the “duties” tests. This new rule, estimated to impact 1.3 million workers:

  • Raises the salary level from the current $455 per week to $684 per week or $35,568 per year for a full-year worker
  • Raises the total annual compensation level for highly compensated employees from the current $100,000 per year to $107,432 per year
  • Allows employers to use nondiscretionary bonuses and incentive payments (including commissions) that are paid at least annually to satisfy up to 10 percent of the salary level

For more information, details and how this could affect you and your health center, click here. It should also be noted that the Pennsylvania Department of Labor & Industry (L&I) has final rules impacting overtime in the regulatory approval process. Those final rules provide for annual increases to the minimum salary threshold level for “white collar” workers to $875 per week ($45,550 per year) in 2022. Following three years of annual increases, beginning in 2023, the salary level would be automatically adjusted every three years “at a rate equal to the 10th percentile of Pennsylvania workers who work in exempt executive, administrative or professional classifications.” L&I estimates that following implementation of its final rule, an additional 82,000 Pennsylvania employees will be eligible for overtime by 2022. Although PACHC and health centers as well as the PA Chamber of Commerce and many other business stakeholders are on record opposing the rule, it is anticipated that the rule is likely to be approved by the Independent Regulatory Review Commission (IRRC) during it January meeting and that there is unlikely to be a veto-proof majority in the legislature to stop its implementation.