Sections 6001, 6002, and 6003 of the Deficit Reduction Act of 2005 (DRA) made significant changes to the Medicaid prescription drug provisions of the Social Security Act. These changes include revising the definition of average manufacturer price (AMP), establishing a new formula for calculating Federal upper limits (FULs), requiring rebates for certain physician-administered drugs, and clarifying rebate liability for authorized generic drugs.
CMS has provided several resources and documents that will help stakeholders understand the impact of these provisions on the Medicaid program and keep informed about how CMS is implementing these provisions.
To view the Final Rule, please visit the CMS website at: http://www.cms.hhs.gov/DeficitReductionAct/39_MedicaidPrescriptionDrugs.asp#TopOfPage
