House members pledge support to Medicaid changes

May 21, 2007

While more than 100 House and Senate members have sent letters to CMS expressing their concern about the new rule, the bipartisan group at the news conference called for new legislation addressing the issue.

At an NCPA press conference mid-May, 10 members of the House pledged to support the association's efforts to revamp proposed Medicaid pharmacy reimbursement. In July, CMS is expected to implement a new rule, which will change Medicaid reimbursement and begin using average manufacturer price (AMP). GAO recently calculated that the way CMS plans to use AMP would reimburse pharmacies 36% below the acquisition cost. While more than 100 House and Senate members have sent letters to CMS expressing their concern about the new rule, the bipartisan group at the news conference called for new legislation addressing the issue. "A letter isn't enough," insisted Rep. Nancy Boyda (D, Kan.). "We must take legislative action." Rep. Virginia Foxx (R, N.C.) added, "This plan for reimbursement is pennywise and pound-foolish, and we need to change the system."

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