GAO finds AMP reimbursement 36% below acquisition cost

February 2007
Drug Topics;2/5/2007, Vol. 151 Issue 3, p8
Trade Publication
The article reports on the findings of the U.S. Government Accountability Office (GAO) regarding pharmacy reimbursement for generics under Medicaid. According to GAO, pharmacy reimbursement for generics under the Medicaid program would be less than their acquisition costs by an average of 36 percent under the planned change to average manufacturers price (AMP). The agency had found that the AMP of 59 out of the 77 most commonly prescribed and most expensive drugs was lower than the estimated acquisition cost.


Related Articles

  • GAO: 5% of Medicaid-only Enrollees Account for Nearly Half of Costs. Slabodkin, Greg // Healthdatamanagement.com;5/11/2015, p1 

    A small percentage of Medicaid-only enrollees--those who were not also eligible for Medicare--consistently accounted for a large percentage of total Medicaid expenditures, according to the Government Accountability Office.

  • Medicaid: States' Efforts to Maximize Federal Reimbursements Highlight Need for Improved Federal Oversight: GAO-05-836T. Allen, Kathryn G. // GAO Reports;6/28/2005, p1 

    Medicaid--the federal-state health care financing program covering almost 54 million low-income people at a cost of $276 billion in fiscal year 2003--is by its size and structure at significant risk of waste and exploitation. Because of challenges inherent in overseeing the program, which is...

  • Pharmacy Benefit Managers: Evaluating Clinical Utility in the Real World. Epstein, R. S. // Clinical Pharmacology & Therapeutics;Dec2010, Vol. 88 Issue 6, p880 

    The article focuses on the relationship between pharmacy benefit managers (PBMs) and clinical utility. It says that PBMs are being hired by medical payers to contact retail pharmacies and deal with manufacturers to discount branded and generic drugs. It states that PBMs are in a unique position...

  • The impact of Part D on manufacturers. Lipowski, Earlene // Drug Topics;1/8/2007, Vol. 151 Issue 1, p30 

    The article discusses the benefits and impacts of Medicare Part D plan on Medicare beneficiaries and pharmaceutical manufacturers in the U.S. It mentioned that the benefit is seen to increase access to medication among, the government programs runs, risk of concentrating purchase power by...

  • Generic substitution in Finland.  // WHO Drug Information;2004, Vol. 18 Issue 4, p269 

    Focuses on the aim of generic substitution at promoting cost-effective medical treatment in Finland. Requirement of the new practice to pharmacies to replace medical product prescribed by a doctor with a less expensive generic counterpart; Decision of the National Agency for Medicines on which...

  • How to do it... Medication management.  // McKnight's Long-Term Care News;Jun2013, Vol. 34 Issue 6, p20 

    The article presents strategies regarding medication management that will help to increase medical care quality. It mentions the methods for medication management which include proper planning in Medicaid reimbursements, investments in medical technology helps in decreasing costs and managing...

  • Medicare Spending: Preliminary Findings Regarding an Approach Focusing on Physician Practice Patterns to Foster Program Efficiency: GAO-07-567T. Steinwald, A. Bruce // GAO Reports;3/6/2007, p1 

    Medicare's current system of spending targets used to moderate spending growth for physician services and annually update physician fees is problematic. This spending target system--called the sustainable growth rate (SGR) system--adjusts physician fees based on the extent to which actual...

  • Tuning AMP noise out of Medicaid reimbursement. Frederick, Jim // Drug Store News;8/10/2009, Vol. 31 Issue 9, p33 

    The article reports on the misunderstanding between the chain and independent pharmacy leaders and lawmakers to implement the bill new Medicaid prescription reimbursement for the generic drugs in the U.S. It mentions that the implementation of the plan is based on the average manufacturer price...

  • Thanks a lot, Mr. President! Chi, Judy // Drug Topics;3/6/2006, Vol. 150 Issue 5, p12 

    The article focuses on the issues surrounding the budget reconciliation bill signed by U.S. President George W. Bush that reduces Medicaid reimbursement to pharmacies for generic drugs. With the passage of the reconciliation bill, the national effort for healthcare spending might be set back...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics