Pennsylvania
Pennsylvania Court Rejects Red Book Pricing in Workers' Compensation
In the case of Federated Insurance Co. v. Summit Pharmacy, the Pennsylvania Commonwealth Court challenged the state’s method of calculating pharmaceutical costs in workers’ compensation cases.
In the case of Federated Insurance Co. v. Summit Pharmacy, the Pennsylvania Commonwealth Court challenged the state’s method of calculating pharmaceutical costs in workers’ compensation cases.
The court objected to the use of Red Book values, which are similar to the manufacturer’s suggested retail price of a car, to determine the average wholesale price (AWP) of drugs.
Federated Insurance Co. sought a review of an order from the Pennsylvania Bureau of Workers’ Compensation that required the insurer to pay Summit Pharmacy approximately $72,500 to reimburse the cost of generic drugs provided to a claimant for her work-related injuries.
The hearing officer used the Red Book values to calculate this reimbursement amount, a practice adopted by the Bureau for resolving disputes over pharmaceutical costs.
The insurer argued that the Bureau’s use of Red Book values was inconsistent with Pennsylvania’s Workers’ Compensation Act, which limits the reimbursement of pharmaceuticals to 110% of the AWP. The insurer also contended that the Bureau’s ongoing use of the Red Book represented an improper delegation of legislative authority to a private entity.
Summit Pharmacy, on the other hand, argued that AWP is a term of art used within the pharmaceutical industry, which regards the Red Book as an accepted source of AWP. According to Pennsylvania precedent, AWP is intended to be an objective estimate of drug acquisition costs derived on a national basis.
The court sided with the insurer, ruling that Red Book values did not reflect AWP as required by the Workers’ Compensation Act. The court directed the Bureau to identify and publish a different, nationally recognized schedule to determine AWP, reasoning that AWP should be an industry average price, not one charged by a single manufacturer. It noted that the Red Book’s publisher followed a policy under which AWP was reported by manufacturers, calculated based on a markup specified by the manufacturer and suggested wholesale price was reported by the manufacturer.
Scorecard: The court ruled that the use of Red Book values to calculate prices for pharmaceuticals in workers’ compensation cases is inconsistent with the state’s Workers’ Compensation Act. The Bureau has been directed to identify and publish a different, nationally recognized schedule for determining AWP.
Takeaway: This ruling underscores the importance of insurers understanding and challenging the methodologies used to calculate reimbursements in workers’ compensation cases. It may prompt a review of similar practices in other jurisdictions, potentially leading to more accurate and fair reimbursement rates. &
Hersheypark in Pennsylvaniacould be forced to close this summer amid a dispute between the site’s operators and union employees, according to a report.
The amusement park is scheduled to open seven days a week starting May 21 in a shift from its weekend-only operation before the summer, despite a looming vote among employees about whether to go on strike.
Over 200 union maintenance employees at Hersheypark, The Hotel Hershey and Giant Center rejected a contract offer from Hershey Entertainment & Resorts on May 7, according to Inside the Magic. The park’s operators described the proposal as their “last, best and final” offer.
Over a three-day period this week, employees will vote on whether to strike after rejecting the offer, which is the third from the park’s operators. A strike could close the park just in time for the start of the busy summer season when families head on vacation.
The list of employees considering going on strike includes ride mechanics, electricians, plumbers, welders, painters, machinists, utilities technicians, carpenters, garage auto mechanics and sign artists.
In mid-March, the union and Hershey Entertainment & Resorts agreed to extend a former contract for 60 days to allow for continued negotiations.
According to Inside the Magic, union workers are seeking fair wage increases, more affordable care plans and higher pay premiums for less-desirable shifts. The union has also said that it will reject new contract offers that lower professional standards, devalue skilled trades or open the door to lower wages in maintenance roles in the future.
The Independent has contacted Hershey Entertainment & Resorts for comment about the possible strike.
Hersheypark, located 15 miles east of Harrisburg, is the largest amusement park in Pennsylvania. Founded in 1906, the 121-acre site boasts more than 70 rides, a water park with 17 water attractions and an 11-acre North American Wildlife Park, according to Hersheypark’s website.
It’s named for and themed in conjunction with the popular candy company.
However, a different park in the Keystone State was named as the top amusement park in the U.S. on TripAdvisor’s Best of the Best list.
It was Knoebels Amusement Resort in Elysburg, 42 miles north-northeast of Harrisburg, that topped the list. In doing so, the little-known park was ranked higher than Dollywood, Disney World’s Magic Kingdom, Disney’s Hollywood Studios and Universal Islands of Adventure that also made the top 5.
“It’s got it all: roller coasters, kid-friendly rides (bumper cars, a haunted mansion), swimming, camping, a mining museum, and even a championship 18-hole golf course,” TripAdvisor wrote. “The accommodating staff, clean facilities, and fun attractions make for a memorable family-friendly visit.”
Knoebels is the U.S.’s largest free-admission park, although tickets for individual rides cost a fee.
Pennsylvania
Pennsylvania Supreme Court ruling on cast vote records creates uncertainty for counties
NEW CASTLE, Pa. (MyValleyTributes) – Charles “Yami” Frederick Jamison, age 83, of New Castle, Pennsylvania, formerly of Warren, Ohio, passed away, surrounded by his family, on Saturday, May 9, 2026, in Haven Convalescent Home.
Mr. Jamison was born December 2, 1942, in New Castle, a son of the late Charles N. and Anna (Callihan) Jamison and was a 1960 graduate of New Castle High School.
Charles worked as an order checker clerk for Packard Electric Company, Warren, Ohio, for 31 years, until his retirement in 1999.
A proud veteran, he served his country in the United States Navy.
He was a member of St. Mary’s Church, Warren, Ohio and also attended Mass at Holy Spirit Parish – St. Mary’s Church.
Charles spent his free time hunting and playing Euchre.
He is survived by his four sisters, Margaret I. Klann, Mary E. DeMarco and Catherine “Kay” A. Houk (Robert), all of New Castle and Susan J. Olson (Donald), Winfield, Illinois; his brother, Richard Jamison (Linda) of New Castle; and numerous nieces and nephews.
Memorial contributions may be directed to the City Rescue Mission, 319 S. Croton Ave., New Castle, PA, 16101, and the Salvation Army, 240 W. Grant St., New Castle, PA, 16101.
The family would like to extend their gratitude and appreciation to the Haven Convalescent Home for the care and support that Charles received over the years.
Calling Hours will be from 5:00 – 7:00 p.m., on Tuesday, May 12, 2026, in J. Bradley McGonigle Funeral Home and Crematory, Inc., 111 W. Falls St., New Castle.
A Mass of Christian Burial will be held on 10:30 a.m., Wednesday May 13, 2026, in Holy Spirit Parish – St. Mary’s Church, 124 N. Beaver St., New Castle, with Rev. Aaron Kriss, as celebrant.
Interment: Castleview Memorial Gardens, Neshannock Twp.
To order memorial trees or send flowers to the family in memory of Charles F. Jamison, please visit our flower store.
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