Both sides in the closely watched Medicaid average manufacturer price (AMP) case have asked the federal judge deciding the matter to delay further action until July 1.


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Court delays further action in AMP case

June 8th, 2009

ALEXANDRIA, Va. – Both sides in the closely watched Medicaid average manufacturer price (AMP) case have asked the federal judge deciding the matter to delay further action until July 1.

The deadline for the two sides to discuss their readiness to schedule briefs seeking a final decision was May 15.

The main defendant, the Centers for Medicare and Medicaid Services (CMS), said that it could not move forward because it still had not issued a new rule defining “multiple-source drug.”

The plaintiffs, the National Association of Chain Drug Stores and the National Community Pharmacists Association (NCPA), say a revised definition of multisource drug is integral to the court’s ability to consider the case. The plaintiffs and CMS jointly asked the court for the delay.

The May 15 date was a postponement from February 25 because of the change in administration at the Department of Health and Human Services, of which CMS is a part.

NACDS notes that CMS’ latest attempt will be the fourth time it has tried to issue such a definition. Prior attempts were deemed invalid after NACDS and NCPA concluded that the agency failed to take into consideration the associations’ economic report when developing its definition.

“The story of CMS’ Medicaid AMP rule can be summarized in the often-used phrase ‘mistakes were made,’ ” NACDS president and chief executive officer Steve Anderson and NCPA executive vice president and chief executive officer Bruce Roberts said in a joint statement earlier this year.

“We are committed to getting the Medicaid pharmacy reimbursement rule right, for the good of pharmacy, patients and the nation’s entire health care delivery system.”

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