Senate and House consider AMP fixes

October 2, 2007

The Fair Medicaid Drug Payment Act of 2007 would fix the average manufacturers price rule and promote generic drugs.

Both the Senate and House of Representatives are now considering versions of the Fair Medicaid Drug Payment Act of 2007, which would fix the average manufacturers price rule, slated to go into effect in January. The study by the Government Accountability Office, under the new rule many medications will be reimbursed on average 36% below their costs for generic drugs. Both NACDS and PhRMA lauded the House version, which was introduced last week. The legislation changes the definition of AMP to more accurately reflect pharmacy acquisition costs, uses a pricing benchmark based on average acquisition costs, and sets federal upper limits only when there are three or more equivalent drugs on the market.

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