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NACDS, NCPA: Victory for Patients, Pharmacy as CMS Moves to Withdraw Provisions of 'AMP' Rule Currently Blocked by Injunction
Date:9/3/2010

ALEXANDRIA, Va., Sept. 3 /PRNewswire-USNewswire/ -- The following is a statement issued today by National Association of Chain Drug Stores (NACDS) President and CEO Steven C. Anderson, IOM, CAE, and National Community Pharmacists Association (NCPA) Acting Executive Vice President and CEO Douglas Hoey, RPh, regarding the proposed rule by the Centers for Medicare & Medicaid Services (CMS) that would withdraw existing provisions of the Medicaid pharmacy reimbursement formula under the average manufacturer price (AMP) model:

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"We are pleased that the Centers for Medicare & Medicaid Services (CMS) has proposed a rule that would withdraw provisions of what is known as the Medicaid average manufacturer price (AMP) rule.  The proposed rule calls for the withdrawal of existing provisions that define AMP, that determine the calculation of federal upper limits (FULs), and that define 'multiple source drug.'  Put simply, all of these provisions relate to the reimbursement to pharmacies for generic Medicaid prescriptions, and thus impact patients' access to pharmacies.  The move to withdraw these provisions is a victory for patient care as it is delivered in America's pharmacies every day.

"When we filed the lawsuit in 2007 we knew that patient care was at stake.  It is important to point out that the withdrawal of these provisions is another step toward reducing what would have been major cuts to pharmacy reimbursement.  The end result is not an increase in reimbursement to pharmacy, but rather the lessening of cuts that previously would have involved pharmacies selling most generic drugs at a loss, thereby threatening their long-term ab
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SOURCE National Community Pharmacists Association
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