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Pennsylvania Court Rejects Red Book Pricing in Workers' Compensation 

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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.  

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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. 

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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. &





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Pennsylvania

Mid Valley students tour Pennsylvania American Water treatment plant

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Mid Valley students tour Pennsylvania American Water treatment plant


The Mid Valley students also were given the opportunity to design their own water treatment models using various items at the exhibit. (Submitted)

Mid Valley sixth, seventh and eighth grade students toured the Pennsylvania American Water treatment plant near Lake Scranton. They were given a detailed presentation about the water treatment process that they perform daily.

They also were given the opportunity to design their own water treatment models using various items at the exhibit. Students got a behind-the-scenes look at all the different occupations at Pennsylvania American Water Company that many were unaware of.



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David A. Mansel, West Middlesex, PA

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David A. Mansel, West Middlesex, PA


WEST MIDDLESEX, Pa. (MyValleyTributes) – David Armond Mansel, aged 89, passed away on Sunday, April 19, 2026.

Born and raised in West Middlesex, Pennsylvania, on August 8, 1936, David resided in Transfer, Pennsylvania. He was deeply rooted in his faith in God.

He served in the Army in Germany in the 1960s and worked construction for many years. He was proud of his roots on his family’s farm.

David, who was known to many as Uncle Dave, loved to dance and spend time on his boat cruising the Shenango Reservoir. His friendly, outgoing personality helped him to meet people wherever he went, especially on the dance floor. He loved to teach people how to dance the jitter bug (among other dances) in his favorite zoot suit, hat and black and white dance shoes. He was also often seen on one of his many vehicles, like his Mustang convertible, CanAm, or Segway.

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He is survived by his brother, James; his sister and brother-in-law, Denise and Skip Wentz; his sister-in-law, Gloria Mansel; his aunt, Nancy Sabella and his special nieces and nephews who spent a lot of time with him in his later years, Lisa and Jim Blair, Nicole and Brian Serafin, Terry Thompson and Darrell and Jeanie Thompson. He also leaves many more nieces, nephews and cousins and his extended Italian American family.

David was predeceased by his children, Darcy, in 1988 and Wade, 2024. He was also predeceased by his parents, Michael and Clara Mansel; his brother, Leonard and sister, Esther Thompson.

A celebration to remember David will be announced at a later time.

Arrangements handled by John Flynn Funeral Home and Crematory, Inc.

Messages of sympathy, stories and photos can be shared on David’s memorial page, at: www.flynnfuneralhome.com.

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To send flowers to the family or plant a tree in memory of David A. Mansel, please visit our floral store.

A television tribute will air Thursday, April 23 at the following approximate times: 7:10 a.m. on FOX, 12:22 p.m. on WKBN, 5:08 p.m. on MyYTV and 7:27 p.m. on WYTV. Video will be posted here the day of airing.



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Sen. John Fetterman receives no support for re-election from Pennsylvania House Democrats: report

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Sen. John Fetterman receives no support for re-election from Pennsylvania House Democrats: report


Pennsylvania Democrats are reluctant to support Sen. John Fetterman, D-Pa., for re-election, according to a new report.

Punchbowl News spoke to several Pennsylvania congressional members on Monday about whether they’d be willing to endorse Fetterman for another term in 2028 despite the backlash he’s been facing for opposing the Democratic Party.

“Want a sense of how tenuous Sen. John Fetterman’s (D-Pa.) position is with Pennsylvania Democrats? Not a single Pennsylvania House Democrat in the delegation will say Fetterman should run for re-election as a Democrat,” the report said.

Though the House members did not explicitly reject the idea of Fetterman running again, they avoided answering whether they believed Fetterman should seek a second term as a Democrat, often focusing instead on the 2026 midterm elections.

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“My focus right now is on 2026, but I would just say I’d be very surprised if he ran in the Democratic primary for the U.S. Senate,” Rep. Brendan Boyle said.

Rep. Chris Deluzio also answered that he would see what happens after 2026, though Punchbowl News acknowledged both he and Boyle are rumored to be launching their own Senate bids in 2028.

Rep. Mary Gay Scanlon added that she was interested in “getting through 2026 first.”

“I’ll hold my tongue so I don’t get in trouble,” Scanlon said.

Rep. Summer Lee told Punchbowl News the decision was “up to him” whether Fetterman should run, though she added that he would do so “at his own peril.”

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Sen. John Fetterman has received no support from Pennsylvania Democrats for his re-election bid. WILL OLIVER/EPA/Shutterstock

Others were more vocal about their disagreements with Fetterman, though they stopped short of rejecting the idea of Fetterman running again.

“My concern is entirely about him and his health, and I’ll let 2028 take care of itself,” Rep. Madeleine Dean said.

“I disagree with many of his votes.”


Senator John Fetterman, wearing a black hoodie, speaks to reporters who are holding up cell phones to record him.
Several House members didn’t directly comment on whether Fetterman should seek a second term and instead turned their attention to the 2026 midterm elections. AP

“It’s no secret that I’ve been disappointed with some of his votes and that I’m confused by it,” Rep. Chrissy Houlahan added.

“But I’m not responsible for deciding whether he runs again.”

Fox News Digital reached out to Fetterman’s office and the other Pennsylvania Democrats mentioned in the report for comment.

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Fetterman has publicly spoken out against his party on several issues, particularly its growing hostility against Israel.

The Pennsylvania senator has also supported President Donald Trump in his ongoing war against Iran and strict border policies.

Though strategists have suggested Fetterman could switch parties because of his bipartisan stance, he previously ruled out leaving the Democratic Party last year.

“I’m not going to switch. I’m just going to be an independent voice in the Democratic Party. I’m not going to be afraid of people,” Fetterman said.

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