NCPA, NACDS welcome AMP hearing postponement

February 27, 2009
Alaina Scott, Senior Editor

The National Association of Chain Drug Stores (NACDS) and the National Community Pharmacists Association (NCPA) applauded a decision by U.S. District Judge Royce C. Lamberth to postpone a February hearing about Medicaid Average Manufacturer Price (AMP).

The National Association of Chain Drug Stores (NACDS) and the National Community Pharmacists Association (NCPA) applauded a decision by U.S. District Judge Royce C. Lamberth to postpone a February hearing about Medicaid Average Manufacturer Price (AMP).

NACDS and NCPA filed a lawsuit in November 2007 against the U.S. Department of Health & Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS).

The associations also were granted a preliminary injunction blocking the CMS rule on AMP that would have reduced pharmacy Medicaid reimbursement. NACDS and NCPA requested the delay because of the changes in the administration at HHS and because CMS is still revising its definition of “multiple source drug.” NACDS and NCPA consider CMS’ definition of multiple source drugs integral to the court’s decision.

This will be CMS’ fourth attempt to define multiple source drugs. The most recent attempt was rejected because, after looking at CMS documents in preparation for the case, NACDS and NCPA discovered that CMS didn’t consider an NACDS-NCPA economic report when developing its definition.

“Unfortunately, the story of CMS’ Medicaid AMP rule can be summarized by the often-used phrase ‘mistakes were made,’” said NACDS President and CEO Steven C. Anderson.

NACDS and NCPA said they will continue to encourage Congress to work with pharmacy to find more appropriate models for pharmacy reimbursement for generics under Medicaid.