Latebreakers: NCPA, NACDS sue to stop AMP

November 19, 2007

NACDS and NCPA sue CMS to stop implementation of the average manufacturer price rule.

NCPA and NACDS have filed suit in federal court to block CMS from implementing the average manufacturer price rule. "The lawsuit reveals dozens of violations by CMS," explained Don Bell, general counsel and VP of legal affairs for NACDS. The suit charges that CMS violated numerous aspects of the Social Security Act, including its definition of AMP. CMS has already begun collecting AMP data, and the suit was filed to block the agency from following through on its plans to post the data on its Web site. Officials at both pharmacy organizations stressed a final solution to fixing the AMP reimbursement would have to be created by Congress, but that the suit would stop CMS from implementing the rule before legislation could be passed. Currently two bills in the House and one in the Senate offer different funding formulas. The groups also promised to launch a media and grassroots campaign to pressure lawmakers to pass legislation to fix the rule. According to a GAO study, CMS' current AMP formula would cut pharmacy reimbursement by 36% on average.