US judge orders new AMP rule suspension

A US District Court in Washington DC has awarded a preliminary injunction against the Department of Health and Human Services over a new methodology for calculating the average manufacturer price of prescription drugs. The AMP is used by the Centers for Medicare and Medicaid Services (CMS) and state health care programs to calculate reimbursement rates for government-insured patients.

The blocked reform was due to take effect on January 30. It would make the AMPs open to public view and reduce the federal reimbursement of branded drugs where generic options are available. The CMS claimed the reform, opposed by pharmacist groups, would save $8.4 billion over five years.