Since the US Government uses AMP to set Medicaid rebates, as well as the Medicaid Federal Upper Limit (FUL), it is vital the pharmaceutical manufacturers, and their compliance teams understand the concept to prevent possible missteps. This article is Part 1 of a series discussing the history, current usage, and future of the Average Manufacturer Price (AMP).
AMP is most commonly known as the measure of electric current, or to some, a hip energy drink! But in the world of life sciences compliance, AMP means the Medicaid Average Manufacturer Price and it is used as the basis for quarterly rebates for Medicaid utilization paid by pharmaceutical manufacturers to the states. However, just like the electrical AMP, life sciences AMP can hurt you if you don’t understand and respect it. This article is the first in a series in which we’ll explore the origins, current usage and importance to compliance officers, and why AMP has evolved to such a complex and highly scrutinized are of Government Program (GP) Compliance.
Read Full Article in the July 2016 Issue of Life Science Compliance Update