OIG issues AMP price study

June 18, 2007

The Office of the Inspector General of the Department of Health & Human Services issued a new study of average manufacturer price fluctuations.

The Office of the Inspector General of the Department of Health & Human Services issued a new study of average manufacturer price fluctuations. It the study, OIG looked at the price changes between the second quarter of 2005 and the second quarter of 2006 and found that 24% of medication prices changed by at least 10% over the period. The report found that expensive and single-source drugs were the most likely to fluctuate significantly. Overall, 39% of the prices did not change at all, and 16% changed by less than 2%. CMS is expected to issue a final rule on the switch to AMP for Medicaid prescription reimbursement before July 1. Unlike a recent GAO study, which found that AMP prices were on average 36% below acquisition costs for pharmacies, this study did not examine the relationship between AMP and acquisition costs.

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