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HDMA Comments on Release of Medicaid AMP Final Rule

January 28, 2016

ARLINGTON, Va. — HDMA President and CEO John M. Gray issued the following statement on the Centers for Medicare & Medicaid Services’ (CMS) final rule implementing Affordable Care Act changes to Medicaid rebates, the Average Manufacturer Price (AMP) and Federal Upper Limits under the Medicaid Covered Outpatient Drug Program. The rule, referred to as the “AMP rule,” will go into effect on April 1, 2016, with state Medicaid agencies receiving an additional year to adapt their respective programs to the regulation.

“HDMA is pleased that CMS has published the long-awaited AMP final rule. The rule addresses a number of issues identified during the comment period — such as the treatment of bona fide service fees in the calculation of AMP, among others — and strikes an appropriate balance between ensuring continued access to necessary treatments for Medicaid recipients as well as fair reimbursement policies for pharmacy providers.

“HDMA will now begin the process of helping our members, and their supply chain partners, understand their new responsibilities under the rule. We look forward to continuing our collaboration with CMS to ensure a smooth implementation of this final rule for the healthcare supply chain and the patients it serves.”

HDMA will be hosting a complimentary webinar on Thursday, February 4, 2016, at 11:00 AM-12:00 PM to discuss key provisions of the final rule. The webinar, designed for distributors and manufacturers as well as other supply chain stakeholders affected by the AMP rule, will feature Patrick Kelly, Executive Vice President, Government Affairs, HDMA, and Stephanie Trunk, Partner, Arent Fox LLP. For more information and to register, visit the HDMA website.

ABOUT HDA

HDA is the national association representing primary healthcare distributors, the vital link between the nation’s pharmaceutical manufacturers and healthcare providers. Each business day, HDA member companies ensure that over 15 million prescription medicines and healthcare products are delivered safely and efficiently to more than 200,000 pharmacies, hospitals, long-term care facilities, clinics and others nationwide. HDA and its members work daily to provide value and achieve cost savings, an estimated $42 billion each year to our nation’s healthcare system. For more information, visit www.HealthcareDistribution.org.

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