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August 10, 2026

Arizona Proposes $300 Topical Prescription Cap

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The Arizona Medical Resource Office proposed updates to the 2027 Pharmaceutical Fee Schedule, and among the changes is a new $300 cap for prescription topical medications for a 30-day supply, plus a dispensing fee of up to $7.00.

If actual acquisition cost exceeds $300, reimbursement would be limited to 120% of documented actual acquisition cost.

To support continued reimbursement above the cap, the dispensing pharmacy must submit specific clinical rationale certified by the treating provider showing that the medication is reasonably required for adequate treatment of the injured worker and that no less expensive medication is an option, including rationale or previously tried alternatives.

Furthermore, this change would not remove pre-existing caps for compound topical medications, which are still capped at $240 for a 30-day supply (or a pro-rated amount for different days of supply). If adopted, this would go into effect May 1, 2027. 

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