Injunction puts brakes on AMP

December 18, 2007

NACDS and NCPA win a key victory in their legal battle against the AMP rule when a federal judge issued a preliminary injunction against CMS

A Federal District Court Judge has issued a preliminary injunction that prevents the Centers for Medicare & Medicaid Services from collecting data on the average manufacturer price for Medicaid drugs. The injunction effectively, if temporarily, halts CMS from implementing the new payment formula for multi-source generic medications in the program that was set to go into effect in January. In November, NACDS and NCPA jointly filed the suit accusing CMS of violating numerous aspects of the Social Security Act, including its definition of AMP. Officials at NCPA and NACDS are still pushing for a legislative fix for the AMP rule, but it is now unlikely that anything will pass before the Congressional winter recess. Judge Royce Lamberth will issue his written ruling on the preliminary injunction Wednesday and the case will commence in January.

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