Indiana Family and Social Services Administration v. Walgreen Co.

SHEPARD, Chief Justice.

Common wisdom holds that the most complicated matter in state government is the school funding formula. This case about Medicaid administration places that in doubt.

Faced with a sizeable projected financial shortfall, Indiana's Medicaid administrators adopted both emergency and permanent rules to pay pharmacies a dollar less per prescription dispensed and reduce their drug reimbursement rate by three percent. These measures would save the State $825,000 per month.

A group of retail drug companies, pharmacy trade associations, and individual Medicaid recipients…