Groups hope RAC kills AMP

August 6, 2007

NCPA and NACDS joined to strongly back a new bill aimed at stopping the implementation of the new Medicaid AMP rule.

NCPA and NACDS joined to strongly back a new bill introduced by Reps. Nancy Boyda (D, Kan.) and Jo Ann Emerson (R, Mo.) aimed directly at stopping the implementation of the new Medicaid AMP rule before it even starts. The Saving Our Community Pharmacies Act of 2007 would replace AMP entirely with a new measure-retail acquisition cost (RAC)-based on the actual cost to pharmacies to purchase generic medications. Pharmacies would be reimbursed at 150% of the median RAC. The measure would also exclude mail order from its retail price calculations. The bill, which was introduced on July 24, had 30 cosponsors by press time. Backers are hopeful that it might be included in the upcoming reauthorization of the State Children's Health Insurance Program (SCHIP), which is expected to come up for a vote before the August recess. A similar bill has yet to be introduced in the Senate.